PPF Annual Report 2013 - Permanent96th Year 1922 - 2018 2 BANKERS LAKSHMI VILAS BANK LTD...

Phone : 044 - 2642 1212044 - 2642 3203

Date of Meeting:

25-07-2018

(Established - 1922)

Registered Office :

"APPADURAI BUILDINGS", No. 174 & 177,

VELLALA STREET, PURASAWALKAM, CHENNAI-600 084.

e-mail : [email protected] Web : www.ppfnidhi.com

PROSPERITYSERVICE

SECURITY

ANNUALREPORT96th

Year2017 - 2018

CIN : U65992TN1922PLC001974

Phone : 044 - 2642 1212044 - 2642 3203

96th Year96th Year96th Year96th Year96th Year1922 - 2018

96 YEARS IN SERVICE

TO ITS MEMBERS

MARCHING TOWARDS CENTENARY

2017 - 18 TO 2022 - 23

Centenary Decade

(Established - 1922)Registered Office : "APPADURAI BUILDINGS",

No. 174 & 177, VELLALA STREET,PURASAWALKAM, CHENNAI - 600 084.

e-mail : [email protected] Web : www.ppfnidhi.com

CIN : U65992TN1922PLC001974

PROSPERITYSERVICE

SECURITY


1

Chairman : Thiru A.G. RAVISHANKAR, M.Sc.,

Whole Time Directors : Thiru T.S. RAVISANKARThiru N.M. MANIVANNAN, B.A.,

Legal Advisers : Thiru M.A. LAKSHMIPATHI, B.A., B.L.,Thiru V. RAGHUPATHI, B.A. B.L.,

CIN : U65992TN1922PLC001974

Registered Office : "APPADURAI BUILDINGS",No. 174 & 177, VELLALA STREET,

PURASAWALKAM, CHENNAI - 600 084.e-mail : [email protected] Web : www.ppfnidhi.com

PROSPERITYSERVICE

SECURITY

OFFICE BEARERS

Thiru N. M. Manivannan, B.A., (DIN : 00157036)

Thiru V. Raghupathi, B.A., B.L., (DIN : 00393444)

Thiru T.S. Ravisankar (DIN : 00900542)

Dr. E. Sakthi Aisvarya, M.B.B.S., (DIN : 07267018)

Thiru G.S. Venkataraman (DIN : 00419485)

Thiru M.A. Lakshmipathi, B.A., B.L., (DIN : 00315271)

Thiru P.P. Dhandapani, B.Sc., (DIN : 06588100)

Thiru A.G. Ravishankar, M.Sc., (DIN : 00418872)

DIRECTORS

Statutory Auditor

M/s. P.T. PONNAIAH & CO., Chartered Accountant.No.72, B/36, 1st Floor, L-Block, 21st Street, Anna Nagar East,

Chennai - 600 102. Ph : 044 2620 2221, 2628 2221. E-mail : [email protected]

ICAI Membership No. 019873, Firm Registration No. 002669-S

Internal Auditor

Mr. ANANTHA PADMANABHA ALSE, Chartered Accountant.

New No.4. Old No.37, Sriman Srinivasa Road, Alwarpet,Chennai - 600 018, Ph: 044-24990070 email : [email protected]

ICAI Membership No. 200559, Firm Registration No. 009992-S


2

BANKERS

LAKSHMI VILAS BANK LTD Purasawalkam Chennai - 600 084CANARA BANK Purasawalkam Chennai - 600 007CITY UNION BANK Purasawalkam Chennai - 600 084STATE BANK OF INDIA Purasawalkam Chennai - 600 007ALLAHABAD BANK Purasawalkam Chennai - 600 084LAKSHMI VILAS BANK Madipakkam Chennai - 600 091ALLAHABAD BANK Madipakkam Chennai - 600 091ALLAHABAD BANK Peravallur Chennai - 600 082

Registered Office :

"APPADURAI BUILDINGS",No.174 & 177, Vellala Street, Purasawalkam,Chennai – 600 084.Phone : 2642 1212 , 2642 3203E-mail : [email protected] : www.ppfnidhi.com

Branch Office :

Madipakkam Branch :

No.26, Velacherry Main Road, Sadasivam Nagar,Madipakkam, Chennai – 600 091.Phone : 044 4558 3203E-mail : [email protected]

Peravallur Branch :

No.164, Paper Mills Road,Peravallur, Chennai – 600 082Phone : 044 - 4269 3203E-mail : [email protected]


3

Notice is hereby given that the NINETY SIXTH Annual General

Meeting of the Shareholders of The Purasawakum Permanent FundLimited, will be held on Wednesday 25th July, 2018 at 9.00 a.m. at

"HOTEL PALMGROVE" No . 13 , Kodambakkam High Road,

Nungambakkam, Chennai-600034, to transact the business contained

in the Agenda.

All the Shareholders are requested to attend the meeting.

AGENDA

ORDINARY BUSINESS :

1. To receive, consider and adopt the Audited Balance Sheet as at

31st March 2018 along with the Profit & Loss Account and Cash Flow

Statement for the year ended on that date together with the Annexure

and Notes and the Reports of the Directors and Auditors thereon to the

shareholders.

2. To declare dividend on Equity Shares (The Board of Directors have

recommended a dividend at 5% on Equity Shares)

3. To appoint a Director in the place of Thiru N.M. MANIVANNAN,(DIN: 00157036) who retires by rotation and being eligible, offers himself

for re-appointment.

4. To appoint a Director in the place of Thiru V. RAGHUPATHI,(DIN: 00393444) who retires by rotation and being eligible, offers himself

for re-appointment.

5. To appoint a Director in the place of Thiru T.S. RAVISANKAR,(DIN: 00900542) who retires by rotation and being eligible, offers himself

for re-appointment.

CIN : U65992TN1922PLC001974

The PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumPPPPPermanent Fermanent Fermanent Fermanent Fermanent Fund Limitedund Limitedund Limitedund Limitedund Limited (Established - 1922)

PROSPERITYSERVICE

SECURITY

Regd. Office : "APPADURAI BUILDINGS" No.174 & 177,Vellala Street, Purasawalkam, Chennai - 600 084.

Phone : 044 - 2642 3203, 2642 1212e-mail : [email protected] Web : www.ppfnidhi.com


6. To re-appoint Auditors and to fix their remuneration and for this purpose,

to pass with or without modification(s) the following resolution as an

Ordinary Resolution:

"RESOLVED THAT pursuant to provisions of Section 139, 141, 142 and

other applicable provisions of the Companies Act, 2013, if any, read with

the Companies (Audit & Auditors) Rules, 2014, including any statutory

enactment or modification thereof, M/s. P.T. PONNIAH & CO., Chartered

Accountants, (Firm Registration No. 002669-S) be and is hereby

re-appointed as the Statutory Auditors of the Company and to hold the

office from the conclusion of this 96th Annual General Meeting till the

conclusion of 101st Annual General Meeting of the Company, subject to

ratification as to the said appointment at every Annual General Meeting,

if necessary on such remuneration including out of pocket expenses

and other expenses as may be mutually agreed by and between the

Board of Directors and the Auditors.

RESOLVED FURTHER THAT to give effect to above resolution, the Board

of Directors of the Company be and are hereby authorized to take all

necessary steps and to do all such acts, deeds, matters and things which

may deem necessary in this behalf."

SPECIAL BUSINESS:

7. Appointment of Dr. E. SAKTHI AISVARYA (DIN: 07267018) as a

Director.

To consider and, if thought fit, to pass with or without modification(s), the

following Resolution as an Ordinary Resolution:

"RESOLVED THAT Dr. E. SAKTHI AISVARYA (DIN: 07267018) who

was appointed as an Additional Director of the Company at the Meeting

of the Board of Directors of the Company held on 29.01.2018 and who

holds Office as such with effect from 30.01.2018 upto the end of this

Annual General Meeting pursuant to the provisions of Section 161 of the

Companies Act, 2013 and in respect of whom the Nomination and

Remuneration Committee has approved and recommended the

appointment of Dr. E. Sakthi Aisvarya (DIN: 07267018) who is also

member of the Company and possesses minimum qualification shares,

4


as a candidate for the office of the Director of the Company who has also

consented, if appointed, to act as a Director of the Company, be and is

hereby appointed as the Director of the Company who is liable to retire by

rotation.

8. Re-Appointment of Mr. T. S. Ravisankar (DIN: 00900542) as Whole

Time Director and to fix his remuneration:


following resolution as a Special Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 196, 197,

Schedule V and all other applicable provisions of the Companies Act,

2013, the Rules made thereunder and the Articles of Association of the

Company, and pursuant to the approval of the Board of Directors at its

meeting held on 11.06.2018, approval of the Company be and is hereby

accorded for the re-appointment of Mr. T.S. Ravisankar, (DIN: 00900542)

as Whole Time Director of the Company for a period of ONE year with

effect from 7th August, 2018 on a remuneration of Rs. 35,000/- (Rupees

thirty five thousand only) per month and conveyance allowance of

Rs.5,000/- (Rupees five thousand only) per month aggregating to

Rs. 40,000/- (Rupees forty thousand only) per month".

"RESOLVED FURTHER THAT subject to the approval of the shareholders

at the general meeting and further subject to the provisions of the

Companies Act, 2013, the Board of Directors be and is hereby authorized

to make such alterations/modifications, if any, from time to time, on the

remuneration/terms and conditions of the appointment of

Mr.T.S. Ravisankar, (DIN: 00900542) as they may deem fit and necessary,

in the best interest of the Company and to do all such acts and deeds as

may be necessary to give effect to this resolution".

"RESOLVED FURTHER THAT in the event of loss or inadequacy of profits

Mr. T.S. Ravisankar (DIN: 00900542) shall be entitled for the above

mentioned remuneration and conveyance allowance, which shall be the

minimum remuneration."

9. Re-Appointment of Mr. N.M. Manivannan (DIN: 00157036) as Whole

Time Director and to fix his remuneration:

5



following resolution as a Special Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 196, 197,

Schedule V and all other applicable provisions of the Companies Act,

2013, the Rules made thereunder and the Articles of Association of the

Company, and pursuant to the approval of the Board of Directors at its

meeting held on 11.06.2018, approval of the Company be and is hereby

accorded for the re-appointment of Mr. N.M. Manivannan, (DIN: 00157036)

as Whole Time Director of the Company for a period of ONE year with

effect from 7th August, 2018 on a remuneration of Rs.35,000/- (Rupees

thirty five thousand only) per month and conveyance allowance of

Rs. 5,000/- (Rupees five thousand only) per month aggregating to Rs.

40,000/- (Rupees forty thousand only) per month".

"RESOLVED FURTHER THAT subject to the approval of the shareholders

at a general meeting and further subject to the provisions of the Companies

Act, 2013, the Board of Directors be and is hereby authorized to make

such alterations/ modifications, if any, from time to time, on the remuneration/

terms and conditions of the appointment of Mr. N.M. Manivannan,

(DIN: 00157036) as they may deem fit and necessary, in the best interest

of the Company and to do all such acts and deeds as may be necessary to

give effect to this resolution".

"RESOLVED FURTHER THAT in the event of loss or inadequacy of profits

Mr. N. M. Manivannan (DIN: 00157036) shall be entitled for the above

mentioned remuneration and conveyance allowance, which shall be the

minimum remuneration."

10. Alteration of Articles of Association of the Company

To consider and if thought fit, to pass with or without modification(s) the

following Resolution as Special Resolution:

"RESOLVED THAT pursuant to provision of Section 14 and other

applicable provisions, if any, of the Companies Act, 2013 (including any

amendments thereof re-enactment thereof) (the "Act") and subject to

approval of Shareholders and subject to such other statutory and other

approval as may be required, Article of Association of the Company be

and are hereby altered as under.

6


EXISTING ARTICLES

7. Any person may become ashareholder of the Fund. AShare may be allotted to one ormore persons jointly or Eitheror Survivor on request.

ARTICLES TO BE AMENDED AS

7. Any person may become ashareholder of the Fund.

7

22 (a) The management of theaffairs of the Fund shall vest withthe Board of Directors whosestrength shall not be less thanfive and not more than nine.They shall elect every year soonafter the Annual GeneralMeeting, from amongthemselves, the following officebearers: (1) Chairman (2) Oneor two Whole time Director/s and(3) One or more Legal Advisers.

Whole time Director/s shalldischarge the function of keyguardian besides the duties aslaid down in the Articles ofAssociation. Positions (2) and(3) may be decided by the Boardof Directors from time to time oras and when required. At everyAnnual General Meeting onethird of the Directors, who arelongest in office, shall retire byrotation and they shall beeligible for re-election. Noperson shall be eligible to holdoffice of Director unless heholds or acquires in his ownname on the date ofappointment/election not lessthan Ten thousand EquityShares of Re.1/- each. EveryDirector, who is an office bearershall, when retiring from theposition as director also vacatehis/her office as office bearer.(A.G.M. dated 18.09.2017)

22 (a) The management of the affairsof the Fund shall vest with theBoard of Directors whose strengthshall not be less than Five and notmore than Nine . The Companyshall have the following officebearers: (1) Chairman (2) One ortwo Whole time Director/s (3) Oneor more Legal Advisers and (4)Key Guardians to discharge theduties as laid down in Articles ofAssociation, positions (2), (3) & (4)may be decided by the Board ofDirectors from time to time or asand when required as the casemay be.

At every Annual General Meetingone third of the Directors, who arelongest in office, shall retire byrotation and they shall be eligiblefor re-election. No person shallbe eligible to hold office of Directorunless he holds or acquires in hisown name on the date ofappointment/election not less thanTwenty Thousand Equity Sharesof Re.1/- each. Every Director,who is an office bearer shall,when retiring from the position asdirector also vacate his/her officeas office bearer.


EXISTING ARTICLES ARTICLES TO BE AMENDED AS

53 (iii) The surplus if any shall beappropriated in the manner thatthe Board of Directors mayfurther recommend and carryforward the balance.

The dividend shall be paid onshares that have beenoutstanding and issued for theperiod of atleast 6 months priorto the date of declaration.

Dividend not drawn within 7years from the date ofdeclaration shall be credited toInvestor Education andProtection Fund, u/s 125 of theCompanies Act, 2013 subject toany modifications or exemptionsas may be directed by theGovernment from time to time.

53 (iii) The surplus if any shall beappropriated in the manner thatthe Board of Directors mayfurther recommend and carryforward the balance.

Any Dividend declared shall bepaid on shares held as on 31stMarch every year.

Dividend not drawn within 7years from the date of declarationshall be credited to InvestorEducation and Protection Fund,u/s 125 of the Companies Act,2013 subject to any modificationsor exemptions as may bedirected by the Government fromtime to time.

56. The Key-guardian sub-committee of the Fund shallconsist of Whole time Director/sand at the Branches, it shallconsist of two Executives notbelow the rank of an Officer asauthorized by the Board. Two ofthe Directors other than Wholetime Director/s authorized by theBoard shall conduct averification of jewels in thecustody of the Head Office andsuch Branch (es) as may bedecided by the Board. Theverification shall be conductedonce in three months. All bonds,title deeds and jewels shall belodged in the strong safes orboxes, which shall be secured

56. The Key-guardian sub-committeeof the Fund shall consist of notmore than Three Directorsincluding Whole Time Director/sand at the Branches, it shallconsist of two Executives notbelow the rank of an Officer asauthorized by the Board. Allbonds, title deeds and jewelsshall be lodged in the strong safesor boxes, which shall be securedby not less than three/ two locksas the case may be. Each KeyGuardian Director/Whole TimeDirector/s shall hold the key orkeys of one lock of such safes orboxes. With respect to Branches,authorized officials shall hold thekeys to the locks of such a safe or

8



9

by not less than three/ two locksas the case may be. Each wholetime director shall hold the keyor keys of one lock of such safesor boxes. With respect toBranches, authorized officialsshall hold the keys to the locksof such a safe or boxes. Thesafes or boxes shall be kept in asafe place in the office buildingof the Fund and shall be openedevery working day. In the caseof head office, if at any suchmeeting of the key guardians, akey-guardian is unable to attend,it shall be open to him on his ownresponsibility to depute anyDirector to discharge his dutiesat such meeting and suchDirector shall be eligible forconveyance as may be fixed bythe Board from time to time. If anydocument is required to be takenfor reference of a share-holderin the key-guardian's meeting, afee shall be charged as decidedby the Board of Directors fromtime to time.(AGM dated18.09.2017)

boxes. The safes or boxes shallbe kept in a safe place in the officebuilding of the Fund and shall beopened every working day. If anydocument is required to be takenfor reference of a share-holder inthe key-guardian's meeting, a feeshall be charged from theShareholders as decided by theBoard of Directors from time totime.

70. Interest payable on loan shallbe paid monthly on or before thelast working day of the month forwhich the interest is due.Interest shall be charged for theCalendar month in which theloan is taken, and also for theCalendar month in which theloan is repaid provided

70. Interest payable on all loans otherthan Property Loan shall be paidmonthly on or before the lastworking day of the month for whichthe interest is due. Interest shallbe charged for the Calendarmonth in which the loan is taken,and for the Calendar month inwhich the loan is repaid. In default


10


however that where the loan isrepaid within 30 days from thedate on which it is availed of,interest shall be charged as forone month only. In default ofpayment of interest as providedfor, default interest shall becharged at 21% Per annum orsuch other rate as may be fixedby the Board of Directors fromtime to time. For the purpose ofthis rule fraction of a rupeeamounting to 50 paise and moreshall be reckoned as one rupee.

of payment of interest as providedfor, default interest shall becharged at the rate as may befixed by the Board of Directorsfrom time to time. For the purposeof this rule fraction of a rupeeamounting to fifty paise and moreshall be reckoned as one rupee.

FURTHER RESOLVED THAT for the purpose of giving effect to thisResolution, Mr. T.S. Ravisankar (DIN: 00900542), Whole TimeDirector and in his absence Mr. N.M. Manivannan (DIN: 00157036)Whole Time Director of the Company be and is hereby authorized, onbehalf of the Company, to do all acts, deeds, matters and things asdeem necessary, proper or desirable and to sign and execute allnecessary documents, applications and returns for the purpose ofgiving effect to the aforesaid Resolution along with filing of necessaryE-forms with the Registrar of Companies, Tamil Nadu."

By Order of the Board

T.S. RAVISANKARWhole Time Director

DIN: 00900542Place: Chennai - 600 084.

Date: 23.06.2018


1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT

A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A

MEMBER OF THE FUND. IF IT IS DESIRED TO USE A PROXY, THE INSTRUMENT

APPOINTING THE PROXY, SHOULD BE COMPLETED IN ACCORDANCE WITH SECTION

105(2) OF THE COMPANIES ACT 2013 AND DELIVERED AT THE REGISTERED OFFICE

OF THE COMPANY AT LEAST 48 HOURS BEFORE THE TIME FIXED FOR THE MEETING.

PROXY FORMS CAN BE HAD FROM THE REGISTERED OFFICE OF THE COMPANY.

2. Share holders desiring to have details of information at the Annual General Meeting regarding

any matter in the report or any item in the statements are informed to send their request to

Whole Time Director/Manager of the company seven days prior to the date of the meeting.

3. Shareholders, entitled to attend the Annual General Meeting are requested to bring their

respective share certificate along with their photo ID.

4. Members are requested to intimate the office of any change in the Door numbers and their

addresses with Pin code numbers along with ID proof and address proof.

5. Members / Depositors who have not claimed any amount due to them if any, on the maturity

dates are requested to claim the amount as otherwise the unclaimed amounts have to be

remitted to the Investor Education and Protection Fund of Government of India after 7 years

from the date of maturity of the said Deposits, as required by the provisions of the Companies

Act, 2013 and rules made thereunder.

6. Register e-mail address

To contribute towards greener environment and to receive all documents, notices, including

Annual reports and other communications of the Company, members are requested to register

their e-mail addresses with the Company.

7. Intimate mobile number

Members are requested to intimate their mobile numbers and also changes therein, if any, to

receive communications on deposit renewals and other information from the Company.

8. Members who have been allotted shares up to closing hours of 23.06.2018 are entitled to vote

in the Annual General Meeting.

9. a) As per Ministry of Corporate Affairs Notification No. GSR.908(E) dated 23.09.2016, Nidhi

Companies are exempt from providing e-voting facility.

b) As per Ministry of Corporate Affairs Notification No. GSR.465(E) dated 05.06.2015,

Shareholders who hold shares of more than one thousand rupees in face value or more

than 1% of the total paid-up share capital of the Company whichever is less are eligible

to get Notice of AGM and Annual Report individually.

10. The relative explanatory statement to notice pursuant to Section 102 of the Companies Act,

2013 in respect of the special business as set out in the notice is annexed hereto.

NOTE :

11


EXPLANATORY STATEMENT PURSUANT TO SECTION 102

OF THE COMPANIES ACT, 2013

Item No.7

Dr. E. Sakthi Aisvarya (DIN: 07267018) born on 02.06.1992 who was

appointed as an Additional Director of the Company at the Meeting of the

Board of Directors of the Company held on 29.01.2018 and who holds

Office as such with effect from 30.01.2018 upto the end of this Annual

General Meeting pursuant to the provisions of Section 161 of the Companies

Act, 2013 and in respect of whom the Nomination and Remuneration

Committee has approved and recommended the appointment of

Dr. E. Sakthi Aisvarya (DIN 07267018) who is also member of the Fund

and possesses minimum qualification shares, as a candidate for the office

of the Director of the Company who has also consented, if appointed, to act

as a Director of the Company, be and is hereby appointed as the Director of

the Company who is liable to retire by rotation.

The Board recommends the passing of the Ordinary Resolution as set out

in the Item No. 7 of the Notice for the appointment of Dr. E. Sakthi Aisvarya

(DIN: 07267018) as a Director, liable to retire by rotation.

MEMORANDUM OF INTEREST:

Except Dr. E. Sakthi Aisvarya (DIN: 07267018) being the appointee, none

of her relatives, the other Directors of the Company or their relatives or any

Key Managerial Personnel or their relatives is concerned or interested in

the resolution.

Item No.8

Taking into consideration the volume of amendments issued under the

Companies Act, 2013 and other laws and the nature of operations of your

Company and the volume of business, it has been thought fit & proper to

have atleast two Directors who have the requisite knowledge of various

relevant enactments relating to Nidhi Companies and Corporate Laws on

In terms of Section 102 of the Companies Act, 2013, the following

explanatory statement sets out all the material facts relating to

the Special Business stated under Item No.7, 8, 9 and 10 of the

accompanying Notice.

12


13

whole time basis to take care of the administrative and other day to day

operations/activities of your Company's Head office at Purasawalkam and

also at its branches.

Mr. T. S. Ravisankar (DIN 00900542) who has got vast experience of over

49 years in Nidhi Companies, is a suitable person for re-appointment as

Whole time Director of your Company to take care of the administrative and

other day to day operations/activities of your Company's Head Office at

Purasawalkam and also at its branches.

The appointment and terms of remuneration of Mr. T. S. Ravisankar

(DIN 00900542) and if approved by the Members, will be effective from 7th

day of August, 2018 and will be for a period of one year.

The Nomination and Remuneration Committee and the Board of Directors

at their meeting held on 11th June, 2018 have approved the appointment

and terms of remuneration of Mr. T.S. Ravisankar (DIN 00900542) as Whole

time Director of the company, which is subject to approval by members in

general meeting.

Subject to the provisions of the Companies Act, 2013 and the Nidhi Rules,

2014, the remuneration as stated in the resolution above shall be the

minimum remuneration, whether there are profits or not in any financial

year. The Whole time Director shall not be eligible for any sitting fees or any

other perquisites during his tenure.

The Board recommends the resolution as a Special Resolution for approval

of the Shareholders of the Company.


Mr. T. S. Ravisankar (DIN 00900542) being the appointee, may be deemed

to be interested in the proposed resolution, as it concerns his re-appointment.

None of their relatives, Key Managerial Personnel or their relatives or other

directors are interested or concerned in the resolution.

Item No.9

Taking into consideration the increased activities of your Company and the

volume of business, it has been thought fit & proper to have atleast two

experienced Directors on whole time basis to take care of the administrative

and other day to day operations/activities of your Company's head office at

Purasawakum and also at its branches.


14

Considering the above, it has been thought fit by the Board of Directors to

re-appoint Mr. N. M. Manivannan (DIN: 00157036) who has got rich

experience in the activities of Nidhi Companies as Whole time Director of

your Company to take care of the administrative and other day to day

operations/activities of your Company's Head Office at Purasawalkam and

also at its branches.

Mr. N. M. Manivannan (DIN: 00157036) has got more than 38 years of

working experience in various capacities in Nidhi Companies. Since he

carries with him a very rich experience in managing and administering

Nidhi Companies, your Directors are of the opinion that he may be

considered for the position of Whole Time Director.

The appointment and terms of remuneration of Mr. N. M. Manivannan

(DIN: 00157036) and if approved by the Members, will be effective from 7th

day of August, 2018 and will be for a period of one year.

The Nomination and Remuneration Committee and the Board of Directors

at their meetings held on 11th June, 2018 have approved the re-appointment

and terms of remuneration of Mr. N. M. Manivannan (DIN: 00157036) as

Whole time Director of the company, which is subject to approval by members

in general meeting.

Subject to the provisions of the Companies Act, 2013 and the Nidhi Rules,

2014, the remuneration as stated in the resolution above shall be the

minimum remuneration, whether there are profits or not in any financial

year. The Whole time Director shall not be eligible for any sitting fees or any

other perquisites during his tenure.

The Board recommends the resolution as a Special Resolution for approval

of the Shareholders of the Company.


Mr. N. M. Manivannan (DIN: 00157036) being the appointee, may be

deemed to be interested in the proposed resolutions, as it concerns his

appointment. None of their relatives, Key Managerial Personnel or their

relatives or other directors are interested or concerned is concerned or

interested in the resolution.

As required under clause (IV) of Section II of Part II of Schedule V of the

Companies Act, 2013, the requisite information is furnished below:


4. Financial performance based on given indicators

Year ended

15

I. General Information :

1 Nature of industry: The company is a Nidhi Companyunder Section 406 of the CompaniesAct, 2013.

2 Date or expected date ofcommencement of commercialproduction.

11-09-1922

3 In case of new companies,expected date of commence-ment of activities as per projectapproved by financialinstitutions appearing in theprospectus.

Not Applicable

Details 31.03.2018(in Rs)

31.03.2017(in Rs)

31.03.2016(in Rs)

Total Income 11,92,48,257 12,62,50,059 12,37,69,590

Total Expenses 11,68,46,697 12,44,03,790 12,27,57,988

Profit before Tax 24,01,560 18,46,269 10,11,602

Balance carried over in

Profit & Loss Account

(after Appropriation) 6,23,567 6,55,684 3,98,530

5. Foreign investments or collaborations, if any. Nil


16

I. Information about the appointee(s) :

DetailsT.S. Ravisankar(DIN 00900542)

Date of Birth: 20.06.1949

N.M. Manivannan(DIN: 00157036)


Background details 49 years of experiencein the Company. Boardmember since 2011.

38 years of experiencein Nidhi Company.Board member since2012

Past remuneration Rs.3,12,258/- Rs.3,12,258/-

Recognition or Awards Nil Nil

Job profile and hissuitability

The vast experience ofMr. T.S. Ravisankar(DIN 00900542) willbe useful and requiredon a Whole Time basisfor efficient working ofthe company at thehead office andmanagement of thebranches.

Mr. N.M Manivannan(DIN: 00157036) hasrich and varied experience in administrationof Nidhi Company. Hisexperi ence would beutil ized for administration of the Nidhiwhich also hasbranches.

Remunerationproposed.

Salary: Rs. 35,000/- permonth Conveyanceallowance: Rs. 5000/-per month.

Salary: Rs. 35,000/- permonth Conveyanceallowance: Rs. 5000/-per month.

Comparative remuneration profile withrespect to industry, sizeof the company, profileof the position andperson (in case ofexpatriates the relevantdetails would be withrespect to the country ofhis origin).

Nidhi Companies are aspecial class ofcompanies spreadover various parts ofSouthern India. Theyare small, medium orlarge in size and theremuneration profilevaries depending onthe size of the NidhiCompany. Comparedto Nidhi Companies ofsimilar size, the proposed remuneration isnominal.

Nidhi Companies are aspecial class of companies spread overvarious parts ofSouthern India. Theyare small, medium orlarge in size and theremuneration profilevaries depending onthe size of the NidhiCompany. Comparedto Nidhi Companies ofsimilar size, theproposed remuneration is nominal.


17

DetailsT.S. Ravisankar

(DIN 00900542)Date of Birth: 20.06.1949

N.M. Manivannan(DIN: 00157036)


Pecuniary relationshipdirectly or indirectlywith the company, orrelationship with themanagerial personnel,if any.

NIL, except to the extentof remuneration and4,82,513 Equity Sharesheld by him.No relationship withany managerialpersonnel.

NIL, except to the extentof remuneration and5,02,732 Equity Sharesheld by him.No relationship withany managerialpersonnel.

II. OTHER INFORMATION :

Reasons of loss orinadequate profits.

The company has reported Net profit afterTax of Rs. 17,64,088/- Though the profitshave increased compared to previous year,the company could not achieve higher levelof profits due to structural changes in policy,increased competition from new players,delay in settlement of court cases andtightness in the money market.

Steps taken or proposed tobe taken for improvement

Reduction in cost of operations, geographicalexpansion and aggressive marketing efforts.

Expected increase inproductivity and profits inmeasurable terms

Considering the nature of the industry, it isdifficult to quantify the proposed improvement in measurable terms. It is expected thatthe level of profits will improve in the comingyears.

III. DISCLOSURES :

The provisions of Corporate Governance are not applicable to thecompany and hence the prescribed disclosures are not furnished.

DOCUMENTS FOR INSPECTION :

Copies of the consent letter to act as Directors provided by the saidMr. T.S. Ravisankar and Mr. N. M. Manivannan would be available forinspection by the Members upto the close of the Meeting at theRegistered Office of the Company.


18

Item No.10

Due to practical reasons and administrative convenience amendmentsto Article 7, 22(a), 53(iii), 56 & 70 of the Articles of Association of theCompany are proposed as mentioned in the Special Resolution.

None of the Directors are interested in the above Resolution. Yourdirectors recommend the proposed Special Resolution for yourapproval.

A copy of the existing Memorandum and Articles of Association isavailable for inspection by any member, if so desired, at the RegisteredOffice of the Company between 10 A.M. and 12 Noon on any workingday by giving prior Notice.

By Order of the Boardfor THE PURASAWAKUM PERMANENT FUND LIMITED

T.S. RAVISANKARWhole Time Director

DIN: 00900542

Place: Chennai - 600 084.Date: 23.06.2018.


19

Your Directors hereby present the 96th Annual Report on the working ofthe Fund along with the Audited Balance Sheet as at 31st March 2018, Profitand Loss Account and Cash flow Statement for the year ended on that date.

1) Salient features of the working of the Fund during the year 2017-18 arelisted below:

i) The Deposits for the year 2017-18 stood at Rs.7406.35 lacs as againstRs. 7482.33 lacs in the previous year.

ii) Business under Jewel loan portfolio faced a setback due to fluctuatinggold rates and dip in demand from customers. The position as at31.03.2018, including the business of branches was Rs.1452.35 lacsas against Rs.1650.81 lacs in the previous year (decline being 198.46lacs).

iii) Establishment expenses stood at Rs.308.61 lacs for the year2017-18 as against Rs. 326.30 lacs in the previous year.

iv) During the year under report, gross recoveries in TSL mortgage loanaccounts stood at Rs.182.63 lacs (previous year Rs. 274.42 lacs).Further 25 accounts got settled for Rs.71.15 lacs. In the case ofchronic accounts before the Court, negotiated settlements are beingattempted to expedite elimination of NPA chronic default accounts.

v) The Company during the year under report, has provided a sum ofRs.76,28,439/- towards provisioning to cover shortfall in security value,in respect of mortgage loan accounts (5 borrowers) as required underMCA Notification No.GSR.258(E) dated 31.03.2014 for loans grantedprior to 31.03.2002 as stipulated in the Notification.

vi) Further, as per the above Notification, provisioning to be made formortgage loans granted on or after 01.04.2002 and outstanding as on31.03.2018 is Rs.1,22,121/- and the value of the properties(4 properties) is Rs.2,74,30,066/-. Since the value of the property ismore, No provisioning for NPA is made for this category.

DIRECTORS' REPORT

CIN : U65992TN1922PLC001974

The PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumPPPPPermanent Fermanent Fermanent Fermanent Fermanent Fund Limitedund Limitedund Limitedund Limitedund Limited (Established - 1922)

PROSPERITYSERVICE

SECURITY




20

vii) During the year the Company mobilized additional Equity Capital forRs.89,78,442/- through Rights Issue - 2018 on 1:1 ratio basis to improvethe NOF position and the Company achieved the 1:20 NOF normsand presently the ratio is 1:18.15. We take the opportunity to thank theshareholders who made this possible, by their contribution, reposingconfidence in the management.

viii) The working of the Fund had resulted in a net profit of Rs.17,64,088/-for the year under report after making required provisioning for NPAaccounts (as per Notification (as in Para (v) above) and provision forIncome Tax Rs.5,03,627/-) as shown below.

WORKING RESULTS :

ix) OCC Limit for Rs.500 lacs against Receivables of the Companyobtained from Lakshmi Vilas Bank is being judiciously utilized. As on31.03.2018 the Company has util ized the OCC limit uptoRs.4,88,92,796/-. This advance is further collaterally secured byDeposit of Title Deed of Land and Building owned by the Companyduly registered at SRO, Purasawalkam, Chennai - 600 007. Necessarycharges were created as per the provisions of the Companies Act,2013 and the charges still continue.

Figures in Rs.

Particulars Current Year Previous Year

Total Income 11,92,48,257 12,62,50,059

Total Expenses 11,68,46,697 12,44,03,790

Profit Before Tax 24,01,560 18,46,269

(Less): Provision for Taxation (5,03,627) (5,95,000)

(Less)/Add : Deferred Tax Liability/Asset (1,33,845) 5,885

Profit after Tax 17,64,088 12,57,154

Add: Surplus in Profit & Loss A/c 6,55,684 3,98,530

Balance for Appropriation 24,19,772 16,55,684

(Less): Transfer to General Reserve 8,98,103 (10,00,000)

(Less): Proposed dividend including dividend tax 8,98,103 -

Balance carried over in

Profit & Loss A/c. 6,23,567 6,55,684


21

Financial YearNo. Amount

2017-2018

%% toTotal No. Amount% % to

Total

2016 - 2017

Rs. in Lacs

a) Prompt 53 50.00 0.08 0.00 59 47.97 0.19 0.00b) Default 22 22.00 18.07 0.62 34 27.64 27.93 0.62

Term Closed:c) Since settled and

on scheduled) Others 32 30.00 5046.52 93.05 30 24.39 4214.32 93.05

Total arrears(a+b+c+d) 5064.67 93.67 4242.44 93.67LoanBalance 228.83 6.33 286.83 6.33

Over all 107 100.00 5293.50 100.00 123 100 4529.27 100.00

Efforts to get long pending default accounts settled through negotiationswill continue and similarly Court cases also will be closely followed up forgetting early decisions.

4) Branches:

Branches of the Fund opened in Madipakkam and Peravallur are engagedin mobilizing new business for the Fund particularly in Jewel Loan category.During the year under report, their performance is good as could be seenfrom the chart given below:

2) Performance at a glance :A) Deposits

The total of Fixed Deposits, Re-Investment Deposits, SavingsDeposits and Recurring Deposit as at 31.03.2018 amounted toRs.7406.35 lacs as against Rs. 7482.33 lacs in the previous year.Being a Nidhi Company, disclosure relating to Deposits acceptedby the Company under Rule 8(3)(5)(v) of Companies (Accounts)Rules 2014 is not applicable to our Company.

B) LoansThe total loans on Deposits, Jewels and immovable properties asat 31.03.2018 amounted to Rs.7281.50 lacs as against Rs. 6971.59lacs in the previous year.

C) Sanctions:1) Property Loans: During the year 9 new loans were sanctioned

amounting to Rs.61.00 lacs as against Rs.70.50 lacs for 14 loanaccounts in the previous year.

2) Sanctions of Jewel Loans including silver articles amounted toRs.2038.76 lacs covering 3518 accounts during 2017-18 as againstRs.2351.66 lacs covering 3859 accounts during 2016-17.

3) A comparative position of arrears in property loan for the financialyear ended 31.03.2018 and 31.03.2017 is given below :


22

5) Dividend:

Your Board recommends a payment of Dividend at 5% on Equity ShareCapital for the year on share value held as on 31.03.2018 (5% onRs.1,79,62,066/- works out to Rs.8,98,103/-). An equivalent amount isalso transferred to General Reserve as per the Nidhi Rules 2014.

6) Compliance to MCA stipulation regarding NOF to Fixed Deposits :

Ministry of Corporate Affairs, Notification No.GSR 258(E) dated 31.03.2014had stipulated inter alia, that Deposits accepted by the Nidhi Companiesshall not be more than twenty (20) times the Net Owned Fund (NOF) ofthe Company. Time for compliance to this regulation has been revisedand for your Company the date set is 31.03.2015. The Companyapproached the Regional Director, Southern Region, Ministry of CorporateAffairs, Chennai seeking extension of time to comply with NOF to Depositsratio of 1:20. The Regional Director was kind enough to consider andgrant extension of time up to 31st March 2017. The Company has appliedto the Regional Director (SR) Chennai, seeking further extension of timeupto 31st March 2020, but not got approval. The Company has receiveda Notice dated 20.09.2017 from the Assistant Registrar of Companies,Chennai asking our comments/reply and our Company has sent a reply inits letter dated 27.09.2017 stating that the Company has filed compoundingapplication. Further in order to comply with the statutory conditions andrequirements, the Board of Directors decided to achieve the 1:20 ratio byraising additional Capital by way of Rights Issue on 1:1 Ratio basis andmobilized an additional Equity Share Capital of Rs.89,78,442/- and therebycomplied with the 1:20 Norms as on 31.03.2018. In addition, there isincrease in Equity Share Capital in the normal course of business to theextent of Rs.69,600/-.

BranchDeposit as on31.03.2018

Rs.

Jewel Loan ason 31.03.2018

Rs.

MadipakkamNo. of A/c'sAmount :PeravallurNo. of A/c'sAmount :

4533,66,01,261

8195,49,82,436

These figureswere merged

with HeadOffice business

figures.

3291,54,76,450

3611,78,50,057

Remarks


23

7) Directors :

We regret to inform you that the Director Sri N.B. Kothandaraman, M.A.,F.C.A. passed away on 13.03.2018, who was associated with our Companyfor more than 15 years as Director, Adviser and President. The Boardappreciates the remarkable service rendered by him during his tenure.

a) The Directors Thiru N.M. MANIVANNAN, (DIN: 00157036),Thiru V. RAGUPATHI (DIN: 00393444) and Thiru T.S. RAVISANKAR,(DIN: 00900542) being longest in office, retire by rotation at this AnnualGeneral Meeting and offer themselves for re-appointment.

b) Dr. E. Sakthi Aisvarya born on 02.06.1992 (DIN: 07267018) whowas appointed as an Additional Director of the Company at the Meetingof the Board of Directors of the Company held on 29.01.2018 andwho holds Office as such with effect from 30.01.2018 upto theconclusion of this Annual General Meeting pursuant to the provisions

YearNet Owned

FundsRs. in Lacs

Deposit(all types)

Rs. in LacsRatio

2000-2001 132.70 5388.67 1:40.602001-2002 140.44 5124.89 1:36.492002-2003 137.89 4587.39 1:33.262003-2004 143.25 4286.37 1:29.922004-2005 156.55 3967.29 1:25.342005-2006 160.03 3783.83 1:23.642006-2007 170.13 3923.45 1:23.062007-2008 174.23 4014.49 1:23.042008-2009 165.40 4011.86 1:24.262009-2010 169.57 4448.49 1:26.232010-2011 197.57 4855.50 1:24.572011-2012 239.14 5480.56 1:22.922012-2013 271.33 5769.62 1:21.262013-2014 279.13 5707.19 1:20.452014-2015 287.48 6229.41 1:21.672015-2016 295.47 7075.85 1:23.952016-2017 308.90 7482.33 1:24.222017-2018 408.04 7406.35 1:18.15

As far as your company is concerned the position of NOF to Deposits, atdifferent years, is as given below:


24

of Section 161 of the Companies Act, 2013 and in respect of whom theNomination & Remuneration Committee has approved andrecommended the appointment of Dr. E. Sakthi Aisvarya (DIN07267018) who is also member of the Fund and possesses minimumqualification shares, as a candidate for the office of the Director of theCompany who has also consented, if appointed, to act as a Director ofthe Company, and necessary resolution have been placed before themembers for their consideration. The Board of Directors hasrecommended her appointment.

c) The Board has recommended re-appointment of Mr. T.S. Ravisankar(DIN 00900542) and Mr. N.M. Manivannan, (DIN 00157036) as WholeTime Directors of the Company with effect from 07.08.2018 for a periodof one year, subject to approval of the shareholders.

8) Meeting of the Board :

The Board met 20 times during the financial year. The intervening gapbetween any two meetings was within the period prescribed by theCompanies Act 2013.

9) Reserves:

It is proposed to carry a sum of Rs. 8,98,103/- to Reserves and Surplusthus increasing the Reserves and Surplus to Rs. 2,28,42,070/-.

10) Compliance Certificate:

a) Your Company is exempted under the Companies Act of 2013 fromthe requirement of seeking a Secretarial Compliance Certificate froma Company Secretary in practice.

b) Compliance certificate dated 23.06.2018 for the Financial Year2017-18 received from Statutory Auditor with regard to compliance bythe company to the provisions of Nidhi Rules & the Notification(s)issued by MCA from time to time, attached herewith forms part of thisReport.

11) Auditors:

M/s. P.T. Ponnaiah & Co, Firm Registration No.002669-S, CharteredAccountants, Statutory Auditors of the Company retires at the end of theAGM and are eligible for re-appointment. Their continuance of appointmentfor a further period of 5 years and payment of remuneration are to beconfirmed and approved at this AGM. Your Company has received acertificate from the Auditors stating that the appointment if made will bewithin the limits prescribed by Section 141 of the Companies Act, 2013.

12) In the year under review, deposits matured up to 31st March 2018 andremaining unpaid is included under unsecured Loans as the same maybe renewed or refunded in the subsequent months. The Company hastaken necessary steps for repayment/renewal of these deposits. Out of


25

Rs.1,92,71,914/- representing 515 accounts and a sum ofRs.61,64,001/- representing 121 accounts have since been renewed orrepaid up to 15.06.2018.

13) a) During the year under report, a sum of Rs.98,643/- was remitted toInvestor Education and Protection Fund as per Sec.125 of theCompanies Act, 2013 as detailed here under:

(i) Matured and unclaimed deposits Rs. 85,400.00

(ii) Interest Rs. 13,243.00

TOTAL Rs. 98,643.00

b) However, a sum of Rs.20,141.65 as on 31.03.2018 is liable underInvestor Education and Protection Fund as per Sec.125 of theCompanies Act, 2013 as detailed here under:

Matured and unclaimed deposits Rs. 20,000.00Interest Rs. 141.65

TOTAL Rs. 20,141.65

The above balance of Two Deposits with interest of Rs.20,141.65relating to one Depositor was not remitted to Investor Education andProtection Fund, due to legal claims and a pending case in the HighCourt of Madras.

c) Further the provisions of section 125(2) of the Companies Act 2013do not apply, as there was no unpaid dividend pending for more than7 years.

14) Since the Company is not a manufacturing Company, there is no matter toreport under the provisions of Section 134(3)(m) of the Companies Act,2013 read with Rule 8 of Companies (Accounts) Rules,2014 with regardto conservation of energy and technology absorption and there was noforeign exchange inflow or outflow.

15) The Company has Risk Management Policy to deal with elements of riskthreatening the Company's existence.

16) The Provisions of Sec.135 relating to Corporate Social Responsibility arenot applicable to the Company.

17) Committees Constituted:

i) The provisions of section 149 of the Companies Act, 2013 pertainingto the appointment of independent Directors do not apply to ourCompany as we are not a listed Company.


26

ii) As per Sec.177 your Company has constituted an Audit Committeeconsisting of three members namely Sri A.G. Ravishankar,Sri V. Raghupathi and Sri P.P. Dhandapani and there were fourmeetings during the Financial Year.

iii) As per Section 178(1) your Company has constituted a Nominationand Remuneration Committee with respect to appointment of Directorsand other related matters.

iv) As per section 178(5) of the Companies Act 2013, your Company hasconstituted a Stakeholders Relationship Committee to review andaddress the grievances of the shareholders.

v) The Company has complied with the provisions of Section 177(9) ofthe Companies Act, 2013 relating to Vigil mechanism for Directorsand Employees.

18) There were no loans, guarantees or investments made by the Companyunder section 186 of the Companies Act, 2013 during the year underreview and hence the said provisions are not applicable.

19) There was no contract or arrangements made with related parties asdefined under section 188 of the Companies Act, 2013 during the yearunder review except appointment of Whole Time Directors.

20) Directors Responsibility Statement :-

In compliance with the provisions of Section 134(3)(c) of the CompaniesAct, 2013 your Directors hereby confirm that

(i) in preparing the Annual Accounts for the year ended 31st March 2018all the applicable accounting standards have been followed andthere are no material departures.

(ii) accounting policies were adopted consistently and judgments andestimates that are reasonable and prudent were made so as to give atrue and fair view of the state of affairs of the Company as at 31stMarch 2018 and of the profit and loss of the company for the yearended on that date.

(iii) proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Companyand for preventing and detecting fraud and other irregularities havebeen taken.


27

(iv) the Annual Accounts have been prepared on a going concernbasis.

(v) the Directors had devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems wereadequate and operating effectively.

21) General:

i) The reports of the Commissioners on the inspection of the immovableproperties and the examination of the Documents, Jewels & Pronotes,expressing their satisfaction, have been received.

ii) None of the employees of the Company come under the purview ofsection 197(12) of the Companies Act 2013 read with Rule 5(2) of theCompanies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014.

iii) During the year (2017-18) and upto the date of this Report no eventshad occurred which will have a material bearing on the working of theFund.

iv) The Company has not bought back any of its securities during theyear under review.

v) The Company has not issued any Sweat Equity Shares during theyear under review.

vi) No Bonus shares were issued during the year under review.

22) Reply to Auditor's remarks at Para (m), (s), (l) and (f) of Note No.21

Note No.21(m)

a) During the year under report, a sum of Rs.98,643/- was remitted to InvestorEducation and Protection Fund as per Sec.125 of the Companies Act,2013 as detailed here under:

Matured and unclaimed deposits Rs. 85,400.00

Interest Rs. 13,243.00

TOTAL Rs. 98,643.00


28

b) However, a sum of Rs.20,141.65/- as on 31.03.2017 is liable under InvestorEducation and Protection Fund as per Sec.125 of the Companies Act,2013 as detailed here under:

Matured and unclaimed deposits Rs. 20,000.00

Interest Rs. 141.65

TOTAL Rs. 20,141.65

The above balance of Two Deposits with interest of Rs.20,141.65 relatingto one Depositor was not remitted to Investor Education and ProtectionFund, due to legal claims and a pending case in the High Court ofMadras.

c) Further the provisions of section 125(2) of the Companies Act 2013 do notapply, as there was no unpaid dividend pending for more than 7 years

Note No.21(s) - D.V. Balasubramaiam : Rs.3,53,100/-

The Fund has filed E.P. at City Civil Court, Chennai and the same hasbeen numbered as 3141/2005 and the notice has been sent toD.V. Balasubramanian. The said D.V. Balasubramanian has enteredappearance through his advocate in the E.P.No.3141/2005 and then hehas filed CRP No.1699 of 2006 and obtained interim stay of all furtherproceedings in the above EP. The Respondent Counsel has filed Xeroxcopy of order obtained by him in M.P.No.1 of 2006 in CRP No.1699 of2006. Now, CRP No.1699 of 2006 was dismissed by Honorable HighCourt by order dated 08.10.2013. In E.P. No.3141 of 2005 the Hon'bleCourt has ordered the arrest, judgment debtor Mr. D.V. Balasubramanian.Steps are being taken for his arrest.

Note No.21(l) and (f)

Nidhi Rules issued in April 2014 under the new provisions of the CompaniesAct, 2013 indicated that the balance provisioning to be made in the caseof TSL NPA Accounts are to be completed by 31.03.2017.

Accordingly, in respect of 5 TSL mortgage loan accounts, (5 borrowers)the fair market value of the security was short by Rs.2,66,94,111/- asagainst the loan amounts due and therefore provisioning to be made forthe year 2017-18 is as shown below:

Provisions, Contingent liabilities and Contingent Assets:

(a) As per the Notification of the Ministry of the Corporate Affairs vide GSRNo.258(E) dated 31.03.2014 and Nidhi Rules, 2014, the provision onNon-Performing Assets in respect of Mortgage Loans disbursed by theCompany (28 Loans prior to 31.03.2002) and outstanding as on 31.03.2018is furnished below:


29

(b) Further, as per the above said Notification, provisioning to be made formortgage loans granted on or after 01.04.2002 and outstanding as on31.03.2018 is Rs.1,22,121/- and the value of the property isRs.2,74,30,066/-. Since the value of the property is more, no provision forNPA is required to be made.

(c) In respect of 11 chronic default accounts settled upto 2016-17 with interestconcession left an unrealized default interest of Rs. 6,64,89,557/- and thesame was reduced to Rs.5,69,41,930/- being carried over to subsequentyears to be adjusted against Profits. This is shown as unsecured loanunder Note No. 13.

The company has not recognized any contingent liability or contingentasset.

23) We give below a status report on the cases pending before the Courtsat Chennai :

a. First Appeal in A.S. No.357 of 2014 filed by P.A. Natraj & Others againstthe final decree passed in O.S. No.9952 of 2010 is pending before Hon'bleHigh Court of Madras.

Breakup Details for 28 mortgage loan accounts (25 Borrowers) as on31.03.2018 amounting to Rs.50,44,98,363/- out of overall loans underdispute/court proceedings:

Particulars 23 Accounts(Rs.)

5 Accounts(Rs.)

Total outstanding in respect ofmortgage loans

The Fair market value of theproperties as valued and certified byRegistered Valuer

Shortfall in Security

Less : Provision already made upto31.03.2017

Balance to be provided

Provision made for the current year:

36,70,04,749 13,74,93,614

56,30,21,126 11,07,99,503

NIL 2,66,94,111

1,90,65,672

76,28,439

76,28,439


30

for and on behalf of the Board of Directors

A.G. RAVISHANKARChairman

(DIN : 00418872)

Place: ChennaiDate: 23.06.2018

b. i) O.S. No.6192/2011 filed by M. Erajasimhan against the PurasawakumPermanent Fund Limited and others, is pending on the file of theLearned XVI Asst. Judge, City Civil Court, Chennai. In the said matterI.A. No.12898 of 2011 was filed for an injunction restraining thedefendants from convening the AGM dated 11.08.2011 and theLearned Judge passed an order, to convene the AGM on 11.08.2011and not to pass any resolution in the said AGM. Against the saidOrder, CRP No.2988 of 2011 was preferred before the Hon'ble HighCourt which was pleased to suspend the Order of the LearnedXVI Asst. Judge, City Civil Court, Chennai. Counter has been filed inthe said I.A. No.12898 of 2011 and the matter is pending.

ii) CRP No.2988 of 2011, against I.A. No.12898 of 2011 is pending onthe file of the Hon'ble High Court, Madras.

c. Writ Petition No.5715 of 2012 filed by the Company against the order ofthe Labour Court, Chennai with regard to the payment of bonus is pendingfor final orders of the High Court of Madras.

d. In the civil suit 596 of 2013 filed against Mr. U. Bhaskaran and Mrs.Premalatha for recovery of a sum of Rs.26 lacs, the current position is thatbeyond filing Vakalat on behalf of defendants, no written statement hasbeen filed till the date of this report. The matter is pending before theHon'ble High Court of Madras. Ex-parte evidence is recorded on our sidesince the defendants were not present. Honorable Court was pleased toallow the Application No.3048 & 309 of 2017 in C.S. No.596 of 2013 boththe application adjourned to 26.07.2017 for framing the issues.

24) Our thanks are due to all the share holders and Bankers for continuedco-operation and goodwill and also to the officials of Ministry of CorporateAffairs, New Delhi, Regional Director at Chennai and Registrar ofCompanies, Chennai. We express our thanks to Legal Counsels, Auditorsand Company Secretary. We sincerely thank all members of the Staff ofthe Fund for their diligent service to the Fund.


TO THE MEMBERS OF THE PURASAWAKUM PERMANENT FUND LTD.,

1. Report on Ind AS Financial Statements

We have audited the accompanying standalone Financial Statements of

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai which

comprise the Balance Sheet as at March 31, 2018, the Statement of Profit

and Loss, the Cash Flow Statement for the year then ended, and a summary

of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in

Section 134(5) of the Companies Act, 2013 with respect to the preparation

of these standalone financial statements that give a true and fair view of

the financial position, financial performance and cash flows of the

Company in accordance with the accounting principles generally accepted

in India, including the Accounting Standards specified under Section 133

of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

This responsibility also includes maintenance of adequate accounting

records in accordance with the provisions of the Act for safeguarding of

the assets of the Company and for preventing and detecting frauds and

other irregularities; selection and application of appropriate accounting

policies; making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of adequate

internal financial controls, that were operating effectively for ensuring the

31

P.T. PONNAIAH & Co.,Chartered AccountantsICAI Membership No.019873Firm Regn. No.002669-S

No.72, B/36, 1st Floor,L-Block, 21st Street,Anna Nagar East,Chennai - 600 102.Ph : 2620 2221, 2628 2221.email : [email protected]

INDEPENDENT AUDITOR'S REPORT


32

accuracy and completeness of the accounting records, relevant to the

preparation and presentation of the financial statements that give a true

and fair view and are free from material misstatement, whether due to

fraud or error.

3. Auditors Responsibility

Our Responsibility is to express an opinion on these financial statements

based on our audit.

We have taken into account the provisions of the Act, the accounting and

auditing standards and matters which are required to be included in the

audit report under the provisions of the Act and the Rules made

thereunder.

We conducted our audit in accordance with the Standards on Auditing

specified under Section 143(10) of the Act and the Guidance Note on

Audit of Internal Financial Controls over Financial Reporting. Those

Standards and the Guidance Note require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material

misstatement and whether adequate Internal Financial Controls over

Financial Reporting was established and maintained and if such controls

operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about

the amounts, the disclosures in the financial statements and adequacy of

the Internal Financial Controls over Financial Reporting and their

operating effectiveness. Our Audit of Internal Financial Controls over

Financial Reporting included obtaining an undertaking of Internal

Financial Controls over Financial Reporting, assessing the risk that

material weakness exits, and testing and evaluating the design and

operating effectiveness of Internal Control based on the assessed risk.


33

The procedures selected depend on the auditor's judgment, including the

assessment of the risks of material misstatement of the financial statements,

whether due to fraud or error. In making those risk assessments, the auditor

considers internal financial control relevant to the Company's preparation

of the financial statements that give a true and fair view in order to design

audit procedures that are appropriate in the circumstances. An audit also

includes evaluating the appropriateness of the accounting policies used

and the reasonableness of the accounting estimates made by the

Company's Directors, as well as evaluating the overall presentation of the

financial statements.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion on the Company's

Internal Financial Controls System over Financial Reporting and the

standalone financial statements.

4. a) Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls over financial reporting is a

process designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial

statements for external purposes in accordance with generally

accepted accounting principles. A company's internal financial control

over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately

and fairly reflect the transactions and dispositions of the assets of the

company;

(2) provide reasonable assurance that transactions are recorded as necessary

to permit preparation of financial statements in accordance with generally

accepted accounting principles, and that receipts and expenditures of the

company are being made only in accordance with authorisations of

management and directors of the company; and


34

(3) provide reasonable assurance regarding prevention or timely detection

of unauthorised acquisition, use, or disposition of the company's assets

that could have a material effect on the financial statements.

b) Inherent Limitations of Internal Financial Controls Over Financial

Reporting

Because of the inherent limitations of internal financial controls over

financial reporting, including the possibility of collusion or improper

management override of controls, material misstatements due to error or

fraud may occur and not be detected. Also, projections of any evaluation

of the internal financial controls over financial reporting to future periods

are subject to the risk that the internal financial control over financial

reporting may become inadequate because of changes in conditions, or

that the degree of compliance with the policies or procedures may

deteriorate.

5. Opinion

In our opinion and to the best of our information and according to the

explanations given to us, the aforesaid standalone Ind AS financial

statements give the information required by the Act in the manner so

required and give a true and fair view in conformity with the accounting

principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company

as at March 31, 2018;

(b) In the case of Statement of Profit and Loss, of the Profit for the year

ended on that date.; and

(c) In the case of Cash Flow Statement, of the cash flows for the year

ended on that date.


6. Emphasis of Matter

We draw attention to various paragraphs in Note No.21 with regard to

transfer of the amount to Investor Education and Protection Fund due to

legal disputes, the uncertainty related to the recovery of Accounts

Receivable, Outstandings under Loans against Mortgage of House

Properties (Under dispute / Court proceedings) for several years, charge

of interest on such outstandings and non-recovery of default interest shown

under Loans against Mortgage of House Properties-Unsecured, provision

for NPA under Mortgage Loans and Bad Debts written off during the year

as follows:

Note No.21 (m) : With regard to amount to be transferred to Investor

Education and Protection Fund, the Company could not transfer certain

amounts on account of legal disputes. Our opinion is not qualified in

respect of this matter.

Note No.21 (s) : With regard to Amount Receivable from one borrower

under Loans against Mortgage of House Properties,

Mr.D.V.Balasubramanian, the case is pending before the court.

Our opinion is not qualified in respect of this matter.

Note No.21 (l) and (f) : With regard to 28 Loans against Mortgage of

House Properties (25 borrowers) with huge outstandings pending before

the Honourable courts, recognizing the interest on such borrowings as

Income, Charging of Provision for NPA as expenditure, amount of

unrealized default interest in respect of settled accounts shown under

Loans against Mortgage of House Properties-Unsecured and provision

made to the extent of short fall in the value of security of the House Properties

against the outstandings including interest. Our opinion is not qualified in

respect of this matter.

35


7. Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2016, as amended,

issued by the Central Government of India in terms of sub-section (11) of

section 143 of the Act, we give in "Annexure -A" a statement on the

matters specified in Paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that :

a) We have sought and obtained all the information and explanations

which to the best of our knowledge and belief were necessary for the

purpose of our audit;

b) In our opinion, proper books of account as required by law have been

kept by the Company so far as it appears from our examination of

those books;

c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow

Statement dealt with by this Report are in agreement with the books of

account;

d) In our opinion, the aforesaid standalone financial statements comply

with the Accounting Standards specified under Section 133 of the Act,

read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the Directors

as on 31st March, 2018 taken on record by the Board of Directors,

none of the directors is disqualified as on 31st March, 2018 from being

appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over

financial reporting of the Company and the operating effectiveness of

such controls, refer to our separate report in "Annexure -B"

g) With respect to the other matters to be included in the Auditor's Report

in accordance with

36


For P.T. PONNAIAH & CO.,Chartered Accountants

P.T. PONNAIAHPartner

ICAI Membership No. 019873Firm Registration. No. 002669-S

Place: Chennai - 84.

Date : 23.06.2018.

Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion

and to the best of our information and according to the explanations given to

us, we report that :

i. The company has disclosed the impact and details of pending

litigations against the Company and by the company as disclosed in

the Notes on accounts as per Note No.21.

ii. The Company did not have any Long Term contracts including

derivative contracts for which there were any material foreseeable

losses.

iii. The Company has transferred amounts to Investor Education and

Protection Fund and has not transferred certain amounts reported in

Note 21(m) forming part of the Audited Financial Statements of the

Company.

37


Referred to in paragraph 1 under 'Report on Other Legal & RegulatoryRequirement of our report of even date to the financial statements of theCompany for the year ended March 31, 2018.

1. a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of Fixed Assets.

b) The Fixed Assets have been physically verified by the management ina phased manner, designed to cover all the items over a period of theyears, which in our opinion, is reasonable having regard to the size ofthe company and nature of its business. Pursuant to the program, aportion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies betweenthe books records and the physical fixed assets have been noticed.

c) The title deeds of immovable properties are held in the name of thecompany.

2. In our opinion, since the company is a NIDHI Company, the relevant clauseof CARO 2016 relating to Inventory is not applicable to the company.

3. a) The Company has not granted any Loans secured or unsecured tothe Companies, Firms or other Parties listed in the register maintainedunder section 189 of the Companies Act, 2013. Accordingly, theprovisions of clause 3 (iii) (a) to (C) of the Order are not applicable tothe Company and hence not commented upon. However, the Companyhas accepted Fixed Deposits and other Deposits (unsecured) fromDirectors & Relatives amounting to Rs. 12,05,931/- (Previous Year -Rs. 88,316/-).

b) In our opinion and according to the records of the Company, the rateof interest and other terms and conditions of the Fixed Deposits(unsecured) taken by the Company from the Directors, are prima facienot prejudicial to the interest of the Company.

c) In our opinion and according to the records, the Company is regular inrepaying the principal amount as stipulated and has been regular inpayment of interest.



ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

38


39

4. In our opinion and according to the information and explanations given tous, the company has complied with the provisions of section 185 and I86of the Companies Act, 2013 in respect of loans, investments, guarantees,and security.

5. The Company, being a NIDHI Company, has accepted Deposits from itsShareholders and has complied with the Directions issued as per theNotifications of the Ministry of Corporate Affairs and Nidhi Rules, 2014. Assuch, the provisions of section 73 of the Companies Act, 2013 read withRules made there under are not applicable to the company.

6. As informed to us, the maintenance of Cost Records has not been specifiedby the Central Government under sub-section (1) of Section 148 of theAct, in respect of the activities carried on by the company.

7. a) According to information and explanations given to us and on thebasis of our examination of the books of account, and records, theCompany has been generally regular in depositing undisputedstatutory dues including Provident Fund, Employees State Insurance,Income-Tax, GST and any other statutory dues with the appropriateauthorities. According to the information and explanations given tous, no undisputed amounts payable in respect of the above were inarrears as at March 31, 2018 for a period of more than six monthsfrom the date on which they become payable.

b) There are no dues of income tax, sales tax, service tax, duty of customs,duty of excise, value added tax outstanding on account of any dispute.The Company does not have any undisputed taxes payable at thelast day of the financial year for a period of more than 6 months

8. In our opinion and according to the information and explanations given tous, the Company has not defaulted in the repayment of dues to banks.The Company has taken secured Overdraft and Loan against depositsfrom Lakshmi Vilas Bank, Purasawalkam and no other loans are takenfrom financial institutions or from the government and has not issued anydebentures.

9. Based upon the audit procedures performed and the information andexplanations given by the management, the company has not raisedmoneys by way of initial public offer or further public offer including debtinstruments and term Loans. Accordingly, the provisions of clause 3 (ix) ofthe Order are not applicable to the Company and hence not commentedupon. Being a NIDHI Company, Shares are issued to the members for thepurpose of transacting with the company. During the year, the Companyhas allotted shares to the extent of Rs.9048042/- which includesRs.89,78,442/- by Rights Issue.


40

10. Based upon the audit procedures performed and the information andexplanations given by the management, we report that no fraud by theCompany or on the company by its officers or employees has been noticedor reported during the year.

11. Based upon the audit procedures performed and the information andexplanations given by the management, the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the CompaniesAct are not applicable, as there is no managerial remuneration paid by theCompany.

12. (i) The Company, being a Nidhi Company, has complied with maintainingmore than ten per cent of the total deposits accepted by the companyin unencumbered term deposits.

(ii) During the year, the Company has also achieved the ratio of 1:20 ofNet Owned Funds to Deposits to meet out the liability as specified inthe Nidhi Rules, 2014.

13. In our opinion, all transactions with the related parties are in compliancewith section 177 and 188 of Companies Act, 2013 and the details havebeen disclosed in the Financial Statements as required by the applicableaccounting standards.

14. Based upon the audit procedures performed and the information andexplanations given by the management, the company has not made anypreferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly, theprovisions of clause 3 (xiv) of the Order are not applicable to the Companyand hence not commented upon.

15. Based upon the audit procedures performed and the information andexplanations given by the management, the company has not enteredinto any non-cash transactions with directors or persons connected withhim. Accordingly, the provisions of clause 3 (xv) of the Order are notapplicable to the Company and hence not commented upon.

16. In our opinion, the company is not required to be registered under section45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisionsof clause 3 (xvi) of the Order are not applicable to the Company and hencenot commented upon

for P.T. PONNAIAH & CO.,Chartered Accountants



Place : Chennai - 84

Dated : 23.06.2018.



Referred to in paragraph 1 under Report on Other Legal & Regulatory

Requirement of our report of even date to the financial statements of

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai for the year

ended March 31,2018

Report on the Internal Financial Controls under Clause (i) of Sub-section

3 of Section 143 of the Companies Act, 2013.

We have audited the internal financial controls over financial reporting of

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai as of March

31, 2018 in conjunction with our audit of the standalone financial statements

of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and

maintaining internal financial controls based on the internal control over

financial reporting criteria established by the Company considering the

essential components of internal control stated in the Guidance Note on Audit

of Internal Financial Controls over Financial Reporting issued by the Institute

of Chartered Accountants of India. These responsibilities include the design,

implementation and maintenance of adequate internal financial controls that

were operating effectively for ensuring the orderly and efficient conduct of its

business, including adherence to company's policies, the safeguarding of its

assets, the prevention and detection of frauds and errors, the accuracy and

completeness of the accounting records, and the timely preparation of reliable

financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal

financial controls over financial reporting based on our audit. We conducted

our audit in accordance with the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting and the Standards on Auditing, issued by

41

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT



ICAI and deemed to be prescribed under section 143(10) of the Companies

Act, 2013, to the extent applicable to an audit of internal financial controls,

both applicable to an audit of Internal Financial Controls and, both issued by

the Institute of Chartered Accountants of India. Those Standards and the

Guidance Note require that we comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance about whether adequate

internal financial controls over financial reporting was established and

maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence amount

the adequacy of the internal financial control system over financial reporting

and their operating effectiveness. Our audit of internal financial controls over

financial reporting, assessing the risk that a material weakness exists, and

operating effectiveness of internal control based on the assessed risk. The

procedures selected depend upon on the auditor's judgement, including the

assessment of the risks of material misstatement of the financial statements,

whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion on the Company's internal

financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process

designed to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A company's

internal financial control over financial reporting includes those policies and

procedures that (1) pertain to the maintenance of records that, in reasonable

detail, accurately and fairly reflect the transactions and dispositions of the

assets of the company; (2) provide reasonable assurance that transactions

are recorded as necessary to permit preparation of financial statements in

accordance with generally accepted accounting principles, and that receipts

and expenditures of the company are being made only in accordance with

authorizations of management and directors of the company; and (3) provide

reasonable assurance regarding prevention or timely detection of unauthorized

acquisition, use, or disposition of the company's assets that could have a

material effect on the financial statements.

42


Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over

financial reporting, including the possibility of collusion or improper

management override of controls, material misstatements due to error or fraud

may occur and not be detected. Also, projections of any evaluation of the

internal financial controls over financial reporting to future periods are subject

to the risk that the internal financial control over financial reporting may become

inadequate because of changes in conditions, or that the degree of compliance

with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate

internal financial controls system over financial reporting and such internal

financial controls over financial reporting were operating effectively as at

March 31, 2018, based on the internal control over financial reporting criteria

established by the Company considering the essential components of internal

control stated in the Guidance Note on Audit of Internal Financial Controls

over Financial Reporting issued by the Institute of Chartered Accountants of

India.




Place : Chennai

Dated : 23.06.2018.

43




CERTIFICATE OF STATUTORY AUDITORS

This is to certify that THE PURASAWAKUM PERMANENT FUND

LIMITED has complied with all the directions specified in the various

Notifications issued by the Ministry of Corporate Affairs from time to time

and Nidhi Rules 2014 subject to the Notes on Accounts forming part of

the Audited Statements of Accounts and the Company has been complying

with all the required Provisions of the Companies Act, 2013 as applicable

to NIDHI Companies and the books of account are maintained in conformity

with the accounting principles generally accepted in India.

It is also certified that THE PURASAWAKUM PERMANENT FUND

LIMITED has complied with the Prudential Norms as required by the

Notifications of the Ministry of Corporate Affairs as amended from time

to time and Nidhi Rules 2014 and provision for sub-standard assets has

been made to the extent required and the details have been given in

Notes on Accounts forming part of the Audited Statements of Accounts

of the Company for the year ended 31st March, 2018.




Place : Chennai

Dated : 23.06.2018.

44


45

BALANCE SHEET

AND

PROFIT AND LOSS ACCOUNT

2017 - 2018


46

Report ingPeriod as at31 . 03 . 2017

PARTICULARS

Rs. Rs.I EQUITY AND LIABILITIES(1) Shareholders Fund

a. Share Capital 1 1,79,62,066 89,14,024b. Reserves & Surplus 2 2,28,42,070 2,19,76,084

(2) Non-current Liabilitiesa. Long-term Borrowings 3 22,63,20,108 42,50,54,820b. Other Long-Term Liabilities 4 1,42,73,958 76,97,423

(3) Current Liabilitiesa. Short Term Borrowings 5 56,86,69,244 35,09,31,510b. Other Current liabilities 6 1,73,00,613 1,99,48,703c. Short-Term Provisions 7 24,96,730 10,95,000

TOTAL 86,98,64,789 83,56,17,564

II. ASSETS(1) Non-current Assets

a Fixed Assets-Tangible Assets 8 2,13,77,337 2,17,76,036b. Deferred Tax Asset 9 24,661 1,58,506c. Long term Loans & Advances 10 2,42,42,653 4,28,62,839d. Other non-current Assets 11 13,82,114 23,23,552

(2) Current Assetsa. Cash & Cash Equivalents 12 9,65,94,168 9,08,06,910b. Short term Loans & Advances 13 70,39,07,401 65,42,97,033

c. Other Current Assets 14 2,23,36,455 2,33,92,688

TOTAL 86,98,64,789 83,56,17,564

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.BALANCE SHEET AS AT 31st MARCH, 2018

NoteNo.

Notes to the financial statements : The Accompanying Notes 1 to 14 and Note 21 - AccountingPolicies and Notes on Accounts form part of this Balance Sheet.

Report ingPeriod as at31 . 03 . 2018

Chennai - 600 084.Date : 23.06.2018.

Vide our Report of even date

For P.T. PONNAIAH & Co.,Chartered Accountants

P.T. PONNAIAHPartnerICAI Membership No. 019873Firm Regn. No. 002669-S


T.S. RAVISANKAR

N.M. MANIVANNAN

Whole Time Directors

V. RAGHUPATHI

M.A. LAKSHMIPATHI

P. P. DHANDAPANI

G.S. VENKATARAMAN

E. SAKTHI AISVARYA

Directors


47

For the yearended

31 . 03 . 2017PARTICULARS

INCOME Rs. Rs.

I Revenue from operations 15 11,70,50,620 12,22,16,559

II Other Income 16 21,97,637 40,33,500

Total Revenue 1 1,92,48,257 12,62,50,059

III EXPENSES

a) Employee Benefits Expenses 17 3,08,60,669 3,26,29,650

b) Finance Costs 18 7,15,17,609 7,63,66,633

c) Depreciation & AmortizationExpenses 19 7,30,325 14,77,003

d) Other Expenses 20 1,37,38,094 1,39,30,504

Total Expenses 11,68,46,697 12,44,03,790

IV Profit befor Tax (I+II)-III 24,01,560 18,46,269

V Tax Expense

Less : Tax Expenses Current Tax 5,03,627 5,95,000 Deferred Tax Asset 1,33,845 (5,885)

VI Profit for the year (IV-V) 17,64,088 12,57,154

VII Earnings Per Share - Basic 0.10 0.14 Diluted 0.10 0.14

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2018

NoteNo.

Notes to the f inancial statements : The Accompanying Notes 15 to 20 andNote 21 - Accounting Policies and Notes on Accounts form part of this statement of profit & loss.

For the yearended

31 . 03 . 2018

Chennai - 600 084.Date : 23.06.2018.


For P.T. PONNAIAH & Co.,Chartered Accountants

P.T. PONNAIAHPartnerICAI Membership No. 019873Firm Regn. No. 002669-S


T.S. RAVISANKAR

N.M. MANIVANNAN


V. RAGHUPATHI

M.A. LAKSHMIPATHI

P. P. DHANDAPANI

G.S. VENKATARAMAN

E. SAKTHI AISVARYA

Directors


48

As at31.03.2018

As at31.03.2017PARTICULARS

Rs. Rs.1. SHARE CAPITAL

A. AUTHORISED CAPITAL

2,00,00,000 Equity Shares of Rs.1/- each 2,00,00,000 2,00,00,0002,00,00,000 2,00,00,000

B. ISSUED, SUBSCRIBED AND FULLY PAID-UP

1,79,62,066 Equity shares of Rs.1/- each 1,79,62,066 89,14,0241,79,62,066 89,14,024

Number of Equity Shares

At the beginning of the Year 89,14,024 88,28,024Allotted during the year 90,48,042 86,000At the end of the year 1,79,62,066 89,14,024

C. List of Share Holders holding more than5% of total shares Equity Share holders NIL NIL

2. RESERVES AND SURPLUS

i General Reserves-I Opening 2,11,96,520

Add: Transferred during the year 8,98,103 2,20,94,623 2,11,96,520ii General Reserves - II Opening 90,498 90,498iii Capital Reserve - Opening 33,261 33,261iv Capital Redemption Reserve - Opening 121 121v Surplus in Profit & Loss A/c 6,23,567 6,55,684

2,28,42,070 2,19,76,084APPROPRIATION

Opening Surplus in Statement of Profit & Loss 6,55,685 3,98,530Surplus from Statement of Profit & Loss (IV-V) 17,64,088 12,57,154

24,19,773 16,55,684Transfer to General Reserve 8,98,103 10,00,000Proposed Dividend including dividend tax 8,98,103 -Closing Surplus transferred to Balance Sheet 6,23,567 6,55,684

24,19,773 16,55,684

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018

NoteNo.


49

As at31.03.2018


3. NON CURRENT LIABILITIES: Rs. Rs.Long Term Borrowings:a. Secured Loans - -b. Unsecured Loans (Total Depositsfrom Shareholders)Fixed Deposits 52,75,83,480 52,86,36,230Re-Investment Deposits 18,26,80,080 18,63,68,467Recurring Deposits 2,16,56,665 2,31,71,700Savings Deposits 76,01,333 99,75,713Deposits from Related Parties 11,13,537 86,980

74,06,35,095 74,82,33,090Less : Deposits maturing within aperiod of 12 months transferred toShort - Term Borrowings 51,43,14,987 32,31,78,270

22,63,20,108 42,50,54,820Break up of Long Term Borrowings:Fixed Deposits 8,55,75,475 35,20,13,155Re-Investment Deposits 13,56,06,633 6,85,41,910Recurring Deposits 51,38,000 44,99,755

22,63,20,108 42,50,54,8204. OTHER LONG TERM LIABILITIES:

i). Accrued Interest on Total DepositsFixed Deposits 52,67,556 52,47,288Re-Investment Deposits 1,59,13,890 1,50,94,022Recurring Deposits 14,61,347 15,39,571Savings Deposits 26,752 38,679Deposits from Related Parties 92,394 1,336

2,27,61,939 2,19,20,896Less : Interest payable on Depositmaturing within 12 months transferredto other Current Liabil i t ies 84,87,981 1,42,23,473

1,42,73,958 76,97,423Break up of Accrued Interest on LongTerm Borrowing (Deposits) :Fixed Deposits 7,59,594 34,30,806Re-Investments Deposits 1,31,98,180 39,85,092Recurring Deposits 3,16,184 2,81,525

1,42,73,958 76,97,423


NoteNo.


50

As at31.03.2018

As at31.03.2017

PARTICULARS

CURRENT LIABILITIES: Rs. Rs.

5. SHORT TERM BORROWINGS

a. Secured Loan:Overdraft from Lakshmi Vilas Bankagainst security of Fixed Depositswith Bank for Rs.75 Lakhs 54,61,461 90,265

Overdraft from Lakshmi Vilas Bankagainst security of Book Debts withColleteral security of Office Land &Building owned by the company. 4,88,92,796 2,76,62,975

TOTAL A 5,43,54,257 2,77,53,240

b. Unsecured Loans (Deposits fromShareholders) : Deposits maturingwithin a period of 12 months

Fixed Deposits 44,20,08,005 17,66,17,075Re Investment Deposits 4,70,73,447 11,78,26,557Recurring Deposits 1,65,18,665 1,86,71,945Saving Deposits 76,01,333 99,75,713Deposits from Related Parties 11,13,537 86,980

Total B 51,43,14,987 32,31,78,270

Grand Total (A+B) 56,86,69,244 35,09,31,510

6. OTHER CURRENT LAIBILITIES

(a) Interest Payable on Deposits maturingwithin 12 monthsFixed Deposits 45,07,963 18,16,481Re-Investments Deposits 27,15,719 1,11,08,930Recurring Deposits 11,45,153 12,58,047SavingsDeposits 26,752 38,679Deposits from Related Parties 92,394 1,336

Total A 84,87,981 1,42,23,473


NoteNo.


51

As at31.03.2018

As at31.03.2017

PARTICULARS

(b) OTHERS : Rs. Rs.

RD Closed accounts 8,25,384 6,08,723

Locker Caution Deposits 8,00,350 7,96,150

Ex-gratia payable to Staff 17,29,205 17,27,160

Sundry Creditors - Expenses 1,44,000 1,52,100

Sundry Creditors -

Staff Security Deposits 1,40,000

Ex-employee bonus - court case 4,90,237

Others 46,83,456 53,13,693 24,41,097

Total B 88,12,632 57,25,230

Grand Total (A+B) 1,73,00,613 1,99,48,703

7. SHORT TERM PROVISIONSProvision for Taxation 15,98,627 10,95,000

Proposed Dividend 7,65,620 -

Dividend DistributionTax 1,32,483 -

24,96,730 10,95,000

8. NON-CURRENT ASSETS :FIXED ASSETS :Tangible Assets as per the Scheduleof Fixed Assets with details ofGross Block, Depreciation andNet Block separately enclosed 2,13,77,337 2,17,76,036

2,13,77,337 2,17,76,036


NoteNo.

1. Land 61,64,250 61,64,250 61,64,250 61,64,250

2. Bui ld ing 1,86,21,609 78,185 1,86,99,794 60 48,61,217 2,95,084 51,56,301 1,35,43,493 1,37,60,392

3. Furniture &

Fittings 34,55,484 55,929 35,11,413 10 33,24,871 554 33,25,425 1,85,988 1,30,613

4. Electrical

Installations

& Equipments 36,43,270 10,612 36,53,882 10 21,73,597 2,62,234 24,35,831 12,18,051 14,69,673

5. Motor Car 7,56,847 7,56,847 6 5,50,543 1,19,809 6,70,352 86,495 2,06,304

6. Computer &

Softwares 16,63,723 1,86,900 18,50,623 3 16,18,919 52,644 16,71,563 1,79,060 44,804

TOTAL 3,43,05,183 3,31,626 -- 3,46,36,809 1,25,29,147 7,30,325 -- 1,32,59,472 2,13,77,337 2,17,76,036

PREVIOUS YEAR 3,60,84,931 3,23,143 21,02,891 3,43,05,183 1,28,25,656 14,77,003 17,73,512 1,25,29,147 2,17,76,036 2,32,59,275

52

NOTE No.8 - THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.FIXED ASSETS AS ON 31-03-2018

TANGEBLEASSETS

Gross Block Depreciation Net Block

As at01-04-2017

AdditionsDuring

the Year

Deletionsduring

the year

As at31-03-2018

Up to31-03-2017

For theYear

31.03.2018

Deletionfor theyear

Up to31-03-2018

W.D.V.As on

31-03-2018

W.D.V.As on

31-03-2017

UsefulLife

(years)


As at31.03.2018



53

Rs. Rs.

9. DEFERRED TAX ASSETDeferred Tax liability opening 1,58,506Add : Addition for the year (1,33,845) 24,661 1,58,506

24,661 1,58,50610. LONG TERM LOANS & ADVANCES :

Secured - considered Good Realisableafter a Period of 12 monthsLoans against Mortgage of House

Properties 1,74,39,694 2,18,36,988Loans against Mortgage of House

Properties - Staff 65,96,459 75,73,663Loans against Deposits (FD, RID) 2,06,500 1,33,99,663Loans against Deposits (RD) - 52,525

2,42,42,653 4,28,62,83911. OTHER NON-CURRENT ASSETS :

TNEB Security Deposits 1,92,971 1,92,971Minimum Alternate Tax 2,47,705 2,47,705Deferred Revenue Expenditure

(Long Term) 18,82,876Less : Payable within12 months transferred toOther Current Assets 9,41,438 9,41,438 18,82,876

13,82,114 23,23,552

12. CURRENT ASSETSCASH AND CASH EQUIVALENTSBalance with BanksIn Current Accounts with Banks 43,33,125 38,68,693Cheques on hand 63,48,470 6,98,270Fixed Deposits with Banks 8,21,16,000 8,06,22,500Fixed Deposits with Banks - Employees 1,40,000 1,40,000Cash on Hand 36,56,573 54,77,447

9,65,94,168 9,08,06,910

NoteNo.


54

As at31.03.2018

PARTICULARS


13. SHORT - TERM LOANS AND ADVANCES: Rs. Rs.Loans against Mortgage of HouseProperties (Under dispute /Court Proceedings) 50,64,35,554

Less : Provision forNPA Accounts (Loansgranted before 01.04.2002) 2,66,94,111 47,97,41,443 40,51,78,323

Loans against Mortgage ofHouse Properties securedand considered good 2,28,82,806

Provision for NPA Accounts(Loans granted on or before

01.04.2002) 2,28,82,806 2,86,82,612

Loans against Mortgage ofHouse Properties - Unsecured 5,69,41,930 6,64,89,557

Other Short term Loans (Secured andConsidered Good) :

Loans against Mortgage of HouseProperties - Staff 65,96,459 75,73,663

Jewel & Silver Loans 14,52,34,510 16,50,81,216

Loans against Depsoits (FD & RID) 1,65,89,856 2,39,03,058

Loans against Recurring Deposits 1,63,050 2,51,443

72,81,50,054 69,71,59,872

Less : Loans realisable after 12 monthstransferred to Long Term Loans andAdvances 2,42,42,653 4,28,62,839

70,39,07,401 65,42,97,033

Break up of Short Term Loans &AdvancesLoans against Mortgage of House

Properties (Under dispute /Court Proceedings) 47,97,41,443 40,51,78,323

Loans against Mortgage of HouseProperties (Less Provision for NPAAccounts after 01.04.2002) 54,43,112 68,45,624

Loans against Mortgage of HouseProperties - Unsecured 5,69,41,930 6,64,89,557

As at31.03.2017

NoteNo.


As at31.03.2018



55

Rs. Rs.

Jewel & Silver Loans 14,52,34,510 16,50,81,216

Loans against Deposits (FD & RID) 1,63,83,356 1,05,03,395

Loans against Recurring Deposits 1,63,050 1,98,918

70,39,07,401 65,42,97,033

14. OTHER CURRENT ASSETS

Accrued Interst on Loans

Jewel Loans 72,54,409 90,22,139

Loans against FD and RID 27,35,345 23,05,738

Loans against Recurring Deposits 14,685 28,761

Bank Fixed Deposits Interest receivable 17,18,345 17,10,365

Staff Loans 16,57,415 16,52,816

TDS on Interest from Bank Deposits (FY 2016-17) 30,87,803 24,40,229

TDS on Interst from Bank Deposits for current year 6,01,846 6,47,574

TDS on Rent 3,08,918 3,08,918

Accounts Receivable 3,53,100 7,72,360

Building Sale (Capital Expenditure) 24,15,989 23,73,824

Rental Advance

(Madipakkam & Peravallur) 6,00,000 6,00,000

RD Subscriptions Receivable 1,56,925 2,30,800

Employees Bonus Amt. Court case Invst. 4,90,237 3,57,726

Deferred Revenue Expenditure 9,41,438 9,41,438

TOTAL 2,23,36,455 2,33,92,688

NoteNo.


56

As at31.03.2018

As at31.03.2017

PARTICULARS

15. REVENUE FROM OPERATIONS Rs. Rs.

Interest on Mortgage Loans 7,84,27,007 7,89,93,416Interest on Special Loans

(Gold & Silver) 2,86,81,593 3,25,79,485Interest on Deposit Loans 36,87,309 39,30,402Interest on Recurring Deposit Loans 65,736 1,18,955Interest on Staff Loans 1,71,092 1,19,062Interest on Bank Fixed Deposits 60,17,883 64,75,239

11,70,50,620 12,22,16,559

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.NOTES ATTACHED TO STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2018

16. OTHER INCOME

Jewels Appraiser Fees 14,21,837 20,02,669Profit on Sale of Fixed Assets - 32,247AMC of Lockers 7,75,800 8,04,400Interest on IT Refund - 14,580Miscellaneous Income - 11,79,604

21,97,637 40,33,500

17. EMPLOYEE BENEFIT EXPENSES

Salary and Allowances 2,31,26,851 2,35,92,037Contribution to Provident Fund & Other Fund 26,01,207 26,83,012Staff Gratuity with LIC 17,68,980 34,02,693Staff Leave Encashment with LIC 1,17,620 2,75,664Ex-Gratia to Staff 17,29,205 17,27,160Payment of Back wages 1/5th Written off 9,41,438 9,41,438ESI Contribution 28,916 7,646Remuneration to Wholetime directors 5,46,452 -

3,08,60,669 3,26,29,65018. FINANCE COSTS

Interest paid to Shareholders on Deposits accepted by the company under unsecured loans 6,62,70,205 7,19,19,448

Interest on Bank Overdraft 52,47,404 44,47,185

7,15,17,609 7,63,66,633

NoteNo.




Rs. Rs.

19. DEPRECIATION ANDAMORTIZATION EXPENSESDepreciation as per note : 8 of Fixed assets 7,30,325 14,77,003

7,30,325 14,77,003

20. OTHER EXPENSES

A. Administrative ExpensesCorporation Tax & Others Taxes 2,16,400 4,12,769Printing & Stationary 2,72,457 3,18,244Postage & Telegrams 67,539 60,678Loss on Sale of Fixed Asset(Air Conditioner) - 1,49,626Telephone Charges 1,12,691 1,12,356Electricity Charges 3,70,610 3,68,950Remuneration to Auditor 1,20,000 1,20,000Insurance (Fire, Transit & Fidelity) 2,12,676 3,99,463Refreshment Expenses 4,80,061 3,64,397Miscellaneous Expenses 1,12,904 4,30,418Conveyance to Directors 2,11,350 2,55,900Conveyance to Whole Time Directors 78,064 -Conveyance to Others 1,25,167 56,679Bank charges 99,765 2,91,335Sitting Fees to Directors 8,59,400 11,80,000Computer programmer & consulting charges 3,12,000 1,75,330Repairs & Maintenance

Building Maintanance 31,138 42,068Electrical Maintanance 9,195 5,258Genarator Fuel Maintanance 23,530 11,000

Other periodical Maintanance & Repairs 1,29,118 1,61,253Professional charges 4,77,035 2,32,505Legal Charges 37,000 6,000

57

NoteNo.

As at31.03.2017


As at31.03.2018

As at31.03.2017

PARTICULARS

58


NoteNo.

Security Guard Charges 3,26,700 3,21,599Donations & Charity 74,060 57,790Office Car Fuel & Maintenance 39,849 36,634Filling Fees 42,000 34,786Internal Auditor Fees 48,000 48,000AGM Expenses 2,67,600 2,75,486Service Tax / GST 1,50,645 2,50,291Rent paid 8,02,701 7,67,121Total (A) 61,09,655 69,45,936

OTHERSProvision for TSL NPA Accounts(prior to 1.4.2002) 76,28,439 69,84,568

Total (B) 76,28,439 69,84,568

Grand Total (A+B) 1,37,38,094 1,39,30,504

Chennai - 600 084.Date : 23.06.2018.


For P.T. PONNAIAH & Co.,

Chartered Accountants

P.T. PONNAIAH

Partner

ICAI Membership No. 019873

Firm Regn. No. 002669-S


T.S. RAVISANKAR

N.M. MANIVANNAN


V. RAGHUPATHI

M.A. LAKSHMIPATHI

P. P. DHANDAPANI

G.S. VENKATARAMAN

E. SAKTHI AISVARYA

Directors


THE PURASAWAKUM PERMANENT FUND LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED31st MARCH, 2018

59

PARTICULARS FOR THE YEARENDED 31.03.2018

FOR THE YEARENDED 31.03.2017

A. CASH FLOW FROM OPERATINGACTIVITIES Rs. Rs.

NET PROFIT BEFORE TAX 24,01,560 18,46,269

Adjustment for :

Depreciation 7,30,325 14,77,003

Deferred Revenue Expenditure w/o. - -

Provision for NPA 76,28,439 69,84,568

Bad debts written off - -

Loss on sale of Assets - 1,49,626

Profit on sale of Assets - (32,247)

Income Tax Paid - -

Operating Profit before WorkingCapital Changes 1,07,60,324 1,04,25,219

Adjustments for :

Increase / (Decrease)in Bank Overdraft 2,66,01,017 (83,04,271)

Increase/(Decrease)in Other Current Liabilities (26,48,090) (16,72,881)

Decrease/ (Increase)in Other Current Assets (10,56,234) (14,34,354)(excluding DeferredRevenue Expenditure)

Reversal of Provision for Income tax - (3,95,000)

Cash generated from operations 3,57,69,485 (13,81,287)

Less : Income Tax paid - -

Net Cash used in operating activities 3,57,69,485 (13,81,287)

PARTICULARS FOR THE YEARENDED 31.03.2018

FOR THE YEARENDED 31.03.2017

THE PURASAWAKUM PERMANENT FUND LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED31st MARCH, 2018

B CASH FLOW FROM INVESTINGACTIVITIES

Purchase of Fixed Assets (3,31,626) (3,23,143)

Sale of Fixed Assets 9,41,438 2,12,000

Deferred Revenue Expenditure(Long Term) 9,41,438 9,41,438

Net Cash flow fromInvesting activities 6,09,812 8,30,295

C CASH FLOW FROM FINANCINGACTIVITIES

Issue of Shares 90,48,042 86,000

Increase / (Decrease) in Depositsfrom Shareholders (net) (75,97,995) 4,06,47,972

Increase / (Decrease) inOther Long Term Liabilities (net) 65,76,535 42,49,899

(Increase) / Decrease in Loans (net) (3,09,90,182) (3,17,22,638)

Increase in NPA Provision (net) (76,28,439) (69,84,568)

Bad Debts Written off - -

Net Cash flow fromfinancing activities 3,05,92,039 62,76,665

Net increase in Cash & CashEquivalents during the year(A+B+C) 57,87,258 57,25,673

Cash and Cash equivalents asat beginning of the year 9,08,06,910 8,50,81,237

Cash and Cash equivalents asat end of the year 9,65,94,168 9,08,06,910

60



The Purasawakum PThe Purasawakum PThe Purasawakum PThe Purasawakum PThe Purasawakum Permanent Fermanent Fermanent Fermanent Fermanent Fund Limited,und Limited,und Limited,und Limited,und Limited,Chennai - 600 084.Chennai - 600 084.Chennai - 600 084.Chennai - 600 084.Chennai - 600 084.

NOTE NO.21

Notes on Accounts forming part of Audited Balance Sheet as at 31st.March,2018 and Statement of Profit and Loss Account for the year ended on thatdate.

Significant Accounting Policies :

(a) Basis of Preparation

The accompanying financial statements have been prepared in compliance withtherequirements under section 133 of the Companies Act,2013 (to the extent)read with Rule7 of the Companies (Accounts) Rules, 2014 and other generallyaccepted accounting principles (GAAP) in India, to the extent applicable underthe historical cost convention, on accrual basis of accounting. GAAP comprisesmandatory accounting standards as specified in Companies (AccountingStandards) Rules, 2006.

(b) Use of Estimates

The preparation of Financial statement of the company require management tomake estimates that affect the reported amount of assets and liabilities as at thedate of the Financial Statement and the reported amounts includes revenue andexpenses. Although these estimates are based on management's best knowledgeof current events and actions, actual results may ultimately differ from theseestimates, which are recognized in the period in which the results are materialized.

(c) Fixed Assets

Fixed Assets are stated at cost in compliance with AS 10 (Accounting for FixedAssets). Cost includes taxes, duties, freight and other incidental expensesrelated to acquisition, improvements and installation of the assets.The intangibleassets (Computer Software acquired for internal use) are capitalized inaccordance with the relevant Accounting Standard and included with the Costof Computers and Accessories.

(d) Depreciation

Depreciation on all assets has been provided as per Schedule II of the CompaniesAct, 2013 based on the useful life and on pro- rata basis with reference to thedate of acquisition of the assets in accordance with AS-6 (Depreciation for FixedAssets)

(e) Term Deposits/ Investments

i) The Company is required to maintain 10% of its total deposits (UnsecuredLoans) accepted from the Members with Scheduled Banks as per regulatorydirectives contained in Nidhi Rules 2014. The Company is holding totaldeposits of Rs.8,21,16,000/- with Scheduled Banks of which the Companyhas given lien for overdraft facility to the extent of Rs.75,00,000/- and thebalance of Rs.7,46,16,000/- is in excess of 10% of the Total Depositsaccepted by the Company as on 31.01.2018.

ii) Staff security Deposits of Rs.1,40,000/- is invested in Fixed Deposit withCanara Bank and shown under the head of Cash and Cash Equivalents inNote No.12.

iii) Investments: NIL

61


62

(f) Revenue Recognition

The Revenue of the company includes Interest on Loans granted to Membersand has been recognized on Accrual basis. The Company has been charginginterest on the outstanding in respect of Mortgage Loans which are underDispute/Court Proceedings.

All these mortgage loans were granted several years back and majority of thecases are pending before the courts as the borrowers moved the courts for stayof recovery proceedings through public auction, initiated by the Company. Thecompany is taking all steps to recover the above outstanding dues through courtand also through negotiations with borrowers wherever possible. The companyhas filed recovery suits in three cases, situated outside the Madras Corporationjurisdiction, which are also included in the total dues.

The outstanding under Loans against Mortgage of properties which are underdispute /court proceedings with Interest charged on such loans have beengrouped together and shown under Short Term Loans as Loans against Mortgageof properties (Under dispute/court proceedings) in order to have better controlwhich are amounting to Rs.50,44,98,363/-The above 28 loans are included in thiscategory. Interest on Total Loan outstanding in respect of Term closed accountsunder this category was charged at 2% p.m. from 01.04.2006 onwards as perthe provisions contained in the Mortgage Deeds. Subsequently, the companyhas provided interest on these outstanding on monthly rest basis with effect from01.04.2012 and recognized the same as Interest Income in the Statement ofProfit & Loss A/c. The same practice has been followed for the year ended 31stMarch, 2018 also as in the earlier years. The provision for TSL NPA Accounts(prior to 01.04.2002) to the extent of Rs.76,28,439/- has been charged by theCompany as Expenses in the Statement of Profit & Loss under Note No.20(B)-Other Expenses.

(g) Employee Benefits

(i) Provident Funds and Employees State Insurance Fund (Defined ContributionSchemes) are administered by Central Government of India and contributionsto the said funds are charged by the company to Profit and Loss Accounton accrual basis.

(ii) Leave encashment benefits to employees and Gratuity Benefits to theemployees are covered under the Group Insurance Policy with Life InsuranceCorporation of India and the contributions are charged to Profit and LossAccount under Defined Contribution Plan in accordance with AS-15 (EmployeeBenefits)

(iii) Loans on mortgage of House Properties includes Rs.65,96,459/- (PreviousYear Rs.75,73,663/-) under staff housing loan scheme.

(iv) Staff Loans and Advances are granted on the personal security andassignment of their L.I.C. Policies in favour of the company. All such loansto employees are thus secured and good and recovery of such Loans areby way of monthly deductions from their salary.

(v) The Bonus dispute before the Labour Court under ID No.93/2009 wasdecided in favour of the petitioners upholding their plea of customary bonuswithout quantifying the bonus award. However, the company has filed a Writagainst the award in the High Court vide W.P.No.5715 of 2012. The Writ wasadmitted & stay granted with the condition to pay one month minimum Bonusto staff who are on rolls which is subject to disposal of the case.


63

The Company has also paid Rs.17,25,069/- to 34 employees who were on therolls as on 03.12.2012 towards bonus for the earlier years 2003, 2005, 2006 & 2007as per the Honourable High Court Order dated 03.12.2012 and complied with theorder of the Court. The above Ex-Gratia Payment is subject to final verdict in theabove Writ Petition. The Company has provided one month salary (Basic + D.A.)as Ex-Gratia from the Financial Year 2013-14 onwards.

However, in respect of the following employees, who have since retired fromservice, the amount paid as interim Bonus was deducted and invested in AllahabadBank, Purasawalkam, Branch in separate accounts.

A sum of Rs.47,07,190/- representing back wages and other benefits due asper court order and paid to Sri D. Bakthavatchalam, considered as DeferredRevenue Expenditure to be written off in FIVE equal instalments as shown in NoteNo.11 and the same is being written off in FIVE years with effect from Financial Year2015-16. Accordingly, the amount of Rs.9,41,438/- THIRD Instalment has beenwritten off in the statement of Profit & loss.

(h) Treatment of Prior Period and Extra Ordinary Items

There are no Prior Period Items and Extra-Ordinary Items occurred during theyear

(i) Taxation

Current tax has been provided to the extent of the amount of tax payable inrespect of taxable income for the year for Rs.5,03,627/-. Deferred TaxLiability has been created to the extent of timing differences for an amount ofRs.1,33,845/- The component of Deferred tax is only on account of the non-cashcharge of Depreciation.

(j) Borrowing Cost

No Borrowing cost has been capitalized during the year

(k) Foreign Currency Transactions

There are no Foreign Currency transactions during the year

(l) Provisions, Contingent liabilities and Contingent Assets

(a) As per the Notification of the Ministry of the Corporate Affairs vide GSR No.258(E)dated 31.03.2014 and Nidhi Rules, 2014, the provision on Non-Performing

Sl.No.

Amount Collectedat the time of

RetirementRs.

Accruedinterest

Rs.

Total

Rs.

Date ofRetirement

Name of theEmployee

1 Sri C.M. Sampath Kumar 26.08.2014 84,600 11,729 96,329

2 Sri J. Mohan 31.01.2016 95,004 13,172 1,08,176

3 Sri M. Premchander 31.03.2016 62,662 8,693 71,355

4 Sri C. Damodaran 29.09.2016 29,389 1,967 31,356

5 Sri V. Balaraman 30.01.2017 36,731 2,372 39,103

6 Sri R. Ravi 30.01.2017 32,536 2,101 34,637

7 Sri S. Mani 30.06.2017 24,681 24,681

8 Sri M.R. Murthy Kumar 31.01.2018 84,600 84,600

Total 4,50,203 40,034 4,90,237


64

Breakup Details for 28 mortgage loan accounts (25 Borrowers) as on 31.03.2018amounting to Rs.50,44,98,363/- out of overall loans under dispute/court proceedings:

Particulars 23 Accounts Rs. 5 Accounts Rs.

Total outstanding in respect of mortgageloans

The Fair market value of the propertiesas valued and certified by RegisteredValuer

Shortfall in Security

Less : Provision already made upto31.03.2017

Balance to be provided

Provision made for the current year:

36,70,04,749 13,74,93,614

56,30,21,126 11,07,99,503

NIL 2,66,94,111

1,90,65,672

76,28,439

Assets in respect of Mortgage Loans disbursed by the Company (28 Loans priorto 31.03.2002) and outstanding as on 31.03.2018 is furnished below:

(b) Further, as per the above said Notification, provisioning to be made for

mortgage loans granted on or after 01.04.2002 and outstanding as on

31.03.2018 is Rs.1,22,121/- and the value of the property is

Rs.2,74,30,066/-.Since the value of the property is more, no provision for

NPA is required to be made.

(c) In respect of 11 chronic default accounts settled upto 2016-17 with interest

concession left an unrealized default interest of Rs.6,64,89,557/- and the

same was reduced to Rs.5,69,41,930/- being carried over to subsequent

years to be adjusted against Profits. This is shown as unsecured loan under

Note No. 13.

The company has not recognized any contingent liability or contingent asset.

(m) Investor Education and Protection Fund

a) During the year under report, a sum of Rs.98,643/- was remitted to Investor

Education and Protection Fund as per Sec.125 of the Companies Act, 2013

as detailed here under:

Matured and unclaimed deposits = Rs. 85,400.00

Interest = Rs. 13,243.00

Total = Rs. 98,643.00

76,28,439


65

b) However, a sum of Rs.20,000/- as on 31.03.2018 is liable under Investor

Education and Protection Fund as per Sec.125 of the Companies Act, 2013

as detailed here under:

Matured and unclaimed deposits = Rs. 20,000.00

Interest = Rs. 141.65

Total = Rs. 20,141.65

The above balance of two Deposits with interest of Rs.20,141.65 relating

to one Depositor was not remitted to Investor Education and Protection

Fund, due to legal claims pending in case in the High Court of Madras

and disputes among claimants.

b) Further, the provisions of section 125(2) of the Companies Act 2013 do notapply, as there was no unpaid dividend pending for more than 7 years.

c) In the year under review, deposits matured up to 31st March 2018 andremaining unpaid is included under unsecured Loans as the same may berenewed or refunded in the subsequent months. The Company has takennecessary steps for repayment/renewal of these deposits. Out ofRs.1,92,71,914/- representing 515 accounts and a sum of Rs.61,64,001/-representing 121 accounts have since been renewed or repaid up to15.06.2018.

(n) Managerial Remuneration

The Directors have waived their remuneration for the year 2017-18

(o) Auditor's Remuneration includes:

(p) Related Parties Disclosure:

The Company has accepted Deposits from Directors and theirRelatives which amounts to Rs.12,05,931/- as at 31.03.2018 (Previous YearRs.88,316/-).

(q) Earnings Per share (EPS):

The Earnings Per Share (Rs.1/-) of the company is Re.0.10 against fromRe.0.14 from previous year.

(r) Segment Reporting:

Segment Reporting issued by the Institute of Chartered Accountants of India,considering the nature of the Company's business and its activities/operationswhich are based on financing activities, in the domestic market.

2016-2017Rs.

Statutory Audit 75,000 75,000

Tax Aduit (Paid) 45,000 45,000

TOTAL 1,20,000 1,20,000

PARTICULARS 2017-2018Rs.


(s) General

1. The clauses relating to Inventory, Quantitative Details, Sundry Debtors,Sundry Creditors and Payables to SSI Units are not applicable to the Company.

2. Accounts Receivable:

D.V. Balasubramaiam : Rs.3,53,100/-

The Fund has filed E.P. at City Civil Court, Chennai and the same has beennumbered as 3141/2005 and the notice has been sent to D.V.Balasubramanian. The said D.V. Balasubramanian has entered appearancethrough his advocate in the E.P.No.3141/2005 and then he has filed CRPNo.1699 of 2006 and obtained interim stay of all further proceedings in theabove EP. The Respondent Counsel has filed Xerox copy of order obtainedby him in M.P.No.1 of 2006 in CRP No.1699 of 2006. Now, CRP No.1699of 2006 was dismissed by Honorable High Court by order dated 08.10.2013.In E.P. No.3141 of 2005 order were pronounced by Hon'ble Court andjudgment debtor Mr. D.V. Balasubramanian has to be arrested. Further stepsare being taken.

3. Advance - Capital Expenditure:

Advance of Rs.24,15,989/- towards expenses for Sale of Building is includedunder Building Sale Capital Expenditure.

66

Chennai - 600 084.Date : 23.06.2018.


For P.T. PONNAIAH & Co.,

Chartered Accountants

P.T. PONNAIAH

Partner

ICAI Membership No. 019873

Firm Regn. No. 002669-S


T.S. RAVISANKAR

N.M. MANIVANNAN


V. RAGHUPATHI

M.A. LAKSHMIPATHI

P. P. DHANDAPANI

G.S. VENKATARAMAN

E. SAKTHI AISVARYA

Directors

PROXY FORM - MGT 11[Pursuant to Section 105(6) of the Companies Act, 2013 and rule 19(3)

of the Companies (Management and Administration) Rules 2014]

"

The PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumPPPPPermanent Fermanent Fermanent Fermanent Fermanent Fund Limitedund Limitedund Limitedund Limitedund Limited


Name of the Member

Registered Address

Email id

Folio ID/Client ID No.:

I/ We being the member(s) holding .............................................. shares of the abovenamed Company hereby appoint:

(1) Name : ...................................................................................................

Address : ...................................................................................................

E-mail Id : ....................................Signature .................... or failing him/her

(2) Name : ...................................................................................................

Address : ...................................................................................................

E-mail Id : ....................................Signature .................... or failing him/her

(3) Name : ...................................................................................................

Address : ...................................................................................................

E-mail Id : ....................................Signature ................................................

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 96th AnnualGeneral Meeting of the Company to be held on the on Wednesday 25th July, 2018 at 9.00 a.m. at"Hotel Palmgrove" No. 13, Kodambakkam High Road, Nungambakkam, Chennai - 600 034 and at anany adjournment thereof in respect of such resolutions, in the manner as are indicated below(s).



PROSPERITYSERVICE

SECURITY

CIN : U65992TN1922PLC00197496th Year96th Year96th Year96th Year96th Year

1922 - 2018

67

ResolutionType of

ResolutionOptionalResol

utionNos. For Against

ORDINARY BUSINESS

1. Adoption of Accounts Ordinary2. To declare dividend on Equity Shares

(The Board of Directors have recommended adividend at 5% on Equity Shares) Ordinary

3. Re-appointment of Thiru. N.M. MANIVANNAN,(DIN:00157036) who retires by rotation andbeing eligible offers himself for reappointment Ordinary

4. Re-appointment of Thiru. V. RAGHUPATHI,(DIN:0039344) who retires by rotation andbeing eligible offers himself for reappointment Ordinary

5. Re-appointment of Thiru. T.S. RAVISANKAR,(DIN:00900542) who retires by rotation andbeing eligible offers himself for reappointment Ordinary

6. Re-appointment of Statutory AuditorM/s P.T. Ponniah& Co., OrdinarySPECIAL BUSINESS

7. Appointment of Dr. E. SAKTHI AISVARYA,(DIN:07267018) as Director Ordinary

8. Re-appointment of Thiru. T. S. RAVISANKAR,(DIN: 00900542) as Whole Time Director andto fix remuneration payable. Special

9. Re-appointment of Thiru. N.M. MANIVANNAN(DIN: 00157036) as Whole Time Director andto fix remuneration payable. Special

10. Alteration of Articles of Association of theCompany. Special

Signed this ………… day of July 2018

Signature of the Shareholder(s) Signature of the Proxy holder (s)

AffixRe.1/-

RevenueStamp

NOTES:

1. This form of proxy, in order to be effective, should be duly completed and deposited at the Registered Office of theCompany, not less than 48 hours before the commencement of the Meeting.

2. For the Resolutions, Explanatory statements and Notes, please refer to the Notice of the 96th AGM.

3. It is optional to put "3" mark in the appropriate column against the Resolution indicated in the Box. If you leave the ‘For’or ‘Against’ column blank against any or all Resolutions, your proxy will be entitled to vote in the manners he/she thinksappropriate.

4. Please complete all the details including details of member (s) in the above box before submission.

5. Members may note that a person shall not act as a proxy for more than 50 members and holding in aggregate not morethan 5% of the total voting share capital or the Company. A single person may act as a proxy for a member holding morethan 10% of the total voting share capital of the Company provided that such person shall not act as proxy for any otherperson. The voting power of such proxy holder shall however be restricted to 5% of the total voting Share Capital of theCompany.


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ATTENDANCE SLIP

(Please complete this Attendance Slip and hand it over at the

entrance of the meeting hall)

Folio No/Customer ID...................................

I hereby record my presence at the 96th Annual General Meeting

of the Company being held on Wednesday 25th July 2018 at 9.00

a.m. at "HOTEL PALMGROVE" No. 13, Kodambakkam High Road,

Nungambakkam, Chennai - 600 034.

Name of the Shareholder :.............................................................

Name of the Proxy :......................................................................(To be filled in case the proxy attends instead of shareholder)

..................................................................Signature of the Shareholder / Proxy

"

The PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumThe PurasawakumPPPPPermanent Fermanent Fermanent Fermanent Fermanent Fund Limitedund Limitedund Limitedund Limitedund Limited




CIN : U65992TN1922PLC00197494th Year94th Year94th Year94th Year94th Year

1922 - 201696th Year96th Year96th Year96th Year96th Year

1922 - 2018

69

PROSPERITYSERVICE

SECURITY

PPF Annual Report 2013 - Permanent96th Year 1922 - 2018 2 BANKERS LAKSHMI VILAS BANK LTD...

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Transcript of PPF Annual Report 2013 - Permanent96th Year 1922 - 2018 2 BANKERS LAKSHMI VILAS BANK LTD...